S4845

An Act concerning the financing and development of certain housing projects, and supplementing and amending various parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

“Affordable housing” means low-income housing and moderate-income housing.

“Agency” means the New Jersey Housing and Mortgage Finance Agency established pursuant to section 4 of P.L.1983, c.530 (C.55:14K-4).

“Authority” means the New Jersey Economic Development Authority established by section 4 of P.L.1974, c.80 (C.34:1B-4).

“Developer” means a person, including a local government redeveloper, that proposes to complete or operate a social housing project or a workforce housing project.

“Director” means the Director of the Division of Taxation in the Department of the Treasury.

“Division” means the Division of Investment in the Department of the Treasury.

“Eligibility period” means the period not to exceed 10 years, as specified in an incentive award agreement, during which a local government redeveloper may claim a tax credit under the Social Housing Program, as such period shall be determined by the agency pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), provided that a local government redeveloper may elect a period not to exceed five years for a project located in a government-restricted municipality. A local government redeveloper of a social housing project that has a project labor agreement may elect a period not to exceed five years, provided that if the project is located in a government-restricted municipality the developer may elect a period not to exceed three years.

“Enhanced area means (1) a municipality that contains an urban transit hub, as defined in section 2 of P.L.2007, c.346 (C.34:1B-208); (2) the five municipalities with the highest poverty rates according to the 2017 Municipal Revitalization Index; and (3) the three municipalities with the highest percentage of SNAP recipients according to the 2017 Municipal Revitalization Index.

“Environmental remediation costs” means any costs incurred by a developer in the completion of any actions necessary to investigate, clean up, or respond to a known, suspected, or threatened discharge of contaminants, including, as necessary, the preliminary assessment, site investigation, remedial investigation, and remedial action, pursuant to sections 23 through 43 and section 45 of P.L.1993, c.139 (C.58:10B-1 et seq.).

“Government-restricted municipality” means a municipality in this State with a municipal revitalization index distress score of at least 75, that met the criteria for designation as an urban aid municipality in the 2019 State fiscal year, and that, on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), is subject to financial restrictions imposed pursuant to the "Municipal Stabilization and Recovery Act," P.L.2016, c.4 (C.52:27BBBB-1 et seq.), or is restricted in its ability to levy property taxes on property in that municipality as a result of the State of New Jersey owning or controlling property representing at least 25 percent of the total land area of the municipality or as a result of the federal government of the United States owning or controlling at least 50 acres of the total land area of the municipality, which is dedicated as a national natural landmark. The term "government-restricted municipality" also includes any municipality that: has a population greater than 50,000 and less than 60,000 according to the latest federal decennial census, is designated as the county seat of a county of the second class with a population greater than 800,000 according to the latest federal decennial census, and has an MRI distress score of 62.1; has a population greater than 70,000 and less than 100,000 according to the latest federal decennial census, is designated as the county seat of a county of the second class with a population greater than 515,000 and less than 525,000 according to the latest federal decennial census, and has an MRI distress score of 100; or contains the intersection of Interstate 280 and the Garden State Parkway, and corresponding land areas occupied by such highways under the ownership or control of the federal government of the United States or of this State within its municipal boundary, and has an MRI distress score of 55.5.

“Incentive award” means an award of tax credits to reimburse a local government redeveloper for all or a portion of the project financing gap of a social housing project pursuant to the provisions of sections 2 through 12 of P.L. , c. (C. through ) (pending before the Legislature as this bill).

“Incentive award agreement” means the contract executed between a local government redeveloper and the agency pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), which sets forth the terms and conditions under which the developer may receive the incentive awards authorized pursuant to the provisions of sections 2 through 12 of P.L. , c. (C. through ) (pending before the Legislature as this bill).

“Local government redeveloper” means a county, a county improvement authority designated pursuant to the county improvement authorities law, P.L.1960, c.183 (C.40:37A-44 et seq.), a municipality, a housing authority as defined in the Local Redevelopment and Housing Law, P.L.1992, c.79 (C.40A:12A-1 et seq.), or any entity designated by a county or municipality that enters or proposes to enter into an incentive award agreement pursuant to the provisions of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) for the completion and operation of a social housing project.

“Low-income housing” means housing affordable according to the federal Department of Housing and Urban Development, or other recognized standards for home ownership and rental costs, and occupied or reserved for occupancy by households with a gross household income equal to 50 percent or less of the median gross household income for households of the same size within the housing region in which the housing is located.

“Minimum environmental and sustainability standards” means standards established by the agency in accordance with the green building manual prepared by the Commissioner of Community Affairs pursuant to section 1 of P.L.2007, c.132 (C.52:27D-130.6), regarding the use of renewable energy, energy-efficient technology, and non-renewable resources to reduce environmental degradation and encourage long-term cost reduction.

“Moderate-income housing” means housing affordable according to the federal Department of Housing and Urban Development, or other recognized standards for home ownership and rental costs, and occupied or reserved for occupancy by households with a gross household income equal to more than 50 percent, but less than 80 percent, of the median gross household income for households of the same size within the housing region in which the housing is located.

“MRI distress score” means a municipal revitalization index distress score, as documented in the 2023 Municipal Revitalization Index developed by the Department of Community Affairs.

“Municipal Revitalization Index” means the index by the Department of Community Affairs ranking New Jersey's municipalities according to eight separate indicators that measure diverse aspects of social, economic, physical, and fiscal conditions in each locality.

“Program” means the Social Housing Program, established pursuant to section 2 of P.L. , c. (C. ) ( pending before the Legislature as this bill).

"Project cost" or "eligible project cost" means the costs incurred in connection with a redevelopment project by a developer until the issuance of a permanent certificate of occupancy, or until such other time specified by the agency, for a specific investment or improvement, including the costs relating to lands, except the cost of acquiring such lands, buildings, improvements, real or personal property, or any interest therein, including leases discounted to present value, including lands under water, riparian rights, space rights, and air rights acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated, or improved, any environmental remediation costs, plus costs not directly related to construction, including capitalized interest paid to third parties, of an amount not to exceed 20 percent of the total costs and the cost of infrastructure improvements, including ancillary infrastructure projects. In addition to the foregoing, the term "project cost" shall include, for a project located in a government-restricted municipality, land costs in an amount not to exceed 20 percent of the eligible project cost. The fees associated with the application or administration of a tax credit under sections 2 through 12 of P.L. , c. (C. through C. ) (pending before the Legislature as this bill) shall not constitute a project cost.

“Project financing gap” means the part of the total project cost, including reasonable and appropriate return on investment, that remains to be financed after all other sources of capital have been accounted for, including, but not limited to, developer-contributed capital, which shall not be less than 20 percent of the total project cost, and investor or financial entity capital or loans for which the developer, after making all good faith efforts to raise additional capital, certifies that additional capital cannot be raised from other sources on a non-recourse basis, provided, however, that for a project located in a government-restricted municipality, the local government redeveloper contributed capital shall not be less than 10 percent of the total project cost. Developer-contributed capital may consist of cash, deferred development fees, costs for project feasibility incurred within the 12 months prior to application, property value less any mortgages when the local government redeveloper owns the project site, and any other investment by the developer in the project deemed acceptable by the agency, as provided by regulations promulgated by the agency. Property value shall be valued at the lesser of: (1) the purchase price, provided the property was purchased pursuant to an arm's-length transaction within 12 months of application; or (2) the value as determined by a current appraisal.

“Project labor agreement” means a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project that satisfies the requirements set forth in section 5 of P.L.2002, c.44 (C.52:38-5).

“Qualified incentive tract” means a population census tract having a poverty rate of 20 percent or more or a census tract in which the median family income for the census tract does not exceed 80 percent of the greater of the Statewide median family income or the median family income of the metropolitan statistical area in which the census tract is situated.

“Reasonable and appropriate return on investment” means the discount rate at which the present value of the future cash flows of an investment equals the cost of the investment. In determining the "reasonable and appropriate return on investment," an investment shall not include any federal, State, or local tax credits. For a project that utilizes federal low-income housing tax credits awarded by the agency, the "reasonable and appropriate return on investment" shall be based on the approval of deferred developer fees pursuant to the rules established by the agency. In the event that a project which utilizes federal low-income housing tax credits awarded by the agency generates returns on equity other than federal or local grants or proceeds from the sale of federal or local tax credits, the “reasonable and appropriate return on investment” shall be based on both the discount rate at which the present value of the future cash flows of an investment equal the cost of the investment for the entire project, and when evaluating only the units financed with federal low-income housing tax credits awarded by the agency, the approval of deferred developer fees pursuant to the rules established by the agency.

“Registered apprenticeship program” means a plan containing all the terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices, as required under Part 29 and Part 30 of Title 49 of the Code of Federal Regulations.

“Residential project” means a specific construction project or improvement undertaken by a developer and any ancillary infrastructure project, that is residential in nature, intended for multi-family residency, and may include a parking component. A residential project may involve construction or improvement upon lands, buildings, improvements, or real and personal property, or any interest therein, including lands under water, riparian rights, space rights, and air rights, acquired, owned, developed or redeveloped, constructed, reconstructed, rehabilitated, or improved.

“Social housing project” means a residential project that is undertaken and operated by a local government redeveloper, and which: is located on land owned by the local government redeveloper within an enhanced area; is financed, in part, by general obligation bonds issued by the local government redeveloper, or issued on behalf of the local government redeveloper by a county improvement authority established pursuant to P.L.1960, c.183 (C.40:37A-44 et seq.), for not less than 20 percent of the project costs; and contains no less than 300 residential units. A “social housing project” may include, but is not limited to, a single building, multiple contiguous buildings, or multiple buildings located on contiguous parcels of land or on parcels of land no farther apart than one-quarter of a mile, which project can be completed in phases over a period not to exceed six years commencing from the date of the incentive award agreement.

“Total project cost” means the total amount of money that is required to complete the workforce housing project, as certified and approved by the agency, which amount may be audited at any time by the New Jersey Housing and Mortgage Finance Agency.

“Workforce housing” means housing that is affordable, according to federal Department of Housing and Urban Development or other recognized standards, for home ownership and rental costs and that is occupied or reserved for occupancy by households with a gross household income not more than 120 percent of the median gross household income for households of the same size within the housing region in which the housing is located.

“Workforce housing project” means a specific construction project or improvement undertaken by a developer, which project is located in the State and predominantly includes the construction or improvement of residential housing units, and may include a parking component, provided that at least 20 percent of the residential units in the project are reserved for workforce housing.

2. (New section) a. The Social Housing Program is hereby established as a program under the jurisdiction of the New Jersey Housing and Mortgage Finance Agency. The agency shall administer the program to encourage social housing projects through the provision of incentive awards to reimburse local government redevelopers for certain project costs. The agency may approve the award of an incentive award to a local government redeveloper upon application to the agency pursuant to sections 4 and 5 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill).

b. The agency shall adopt rules and regulations, pursuant to section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill), concerning the establishment and administration of the affordability controls that shall apply to the residential units constructed for occupancy as low-income housing, moderate-income housing, and workforce housing under the program, including, but not limited to, residential units within residential projects that utilize federal low-income housing tax credits awarded by the agency. Notwithstanding any provision of law or regulation to the contrary, the affordability controls shall, at a minimum, be consistent with the affordability controls established in the rules and regulations adopted pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), including, but not limited to, any requirements concerning the bedroom distributions, affordability averages, affirmative marketing, and long-term deed restrictions of residential units constructed for occupancy by low- and moderate-income households.

3. (New section) a. A local government redeveloper shall be eligible to receive an incentive award for a social housing project only if the local government redeveloper demonstrates to the agency at the time of application that:

(1) without the incentive award, the social housing project is not economically feasible;

(2) a project financing gap exists, or the agency determines that the social housing project will generate a below market rate of return;

(3) the social housing project is located in an enhanced area;

(4) except for demolition and site remediation activities, the local government redeveloper has not commenced any construction at the site of the social housing project prior to submitting an application, unless the agency determines that the social housing project would not be completed otherwise;

(5) the social housing project shall comply with minimum environmental and sustainability standards;

(6) the social housing project shall comply with any applicable State affirmative action requirements;

(7) during the eligibility period, each worker employed to perform construction work at the social housing project shall be paid not less than the prevailing wage rate for the worker's craft or trade, as determined by the Commissioner of Labor and Workforce Development pursuant to P.L.1963, c.150 (C.34:11-56.25 et seq.) and P.L.2005, c.379 (C.34:11-56.58 et seq.); and

(8) the social housing project shall be completed, and the local government redeveloper shall be issued a certificate of occupancy for the social housing project facilities by the applicable enforcing agency, within four years of executing the incentive award agreement.

b. In addition to the requirements set forth in subsection a. of this section, for a social housing project to qualify for an incentive award, the project shall:

(1) have a total project cost of at least $17,500,000 if the project is located in a municipality with a population greater than 200,000 according to the latest federal decennial census;

(2) have a total project cost of at least $10,000,000 if the project is located in a municipality with a population less than 200,000 according to the latest federal decennial census; or

(3) have a total project cost of at least $5,000,000 if the project is in a qualified incentive tract or government-restricted municipality.

c. (1) In addition to the requirements set forth in subsections a. and b. of this section, the local government redeveloper shall permanently reserve at least 20 percent of the residential units constructed for workforce housing, and shall permanently reserve at least 20 percent of residential units constructed for low- and moderate-income housing, subject to the affordability controls adopted by the agency pursuant to subsection b. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

(2) In addition to the requirements set forth in subsections a. and b. of this section, a local government redeveloper shall certify that upon completion of a social housing project if, during any year, the local government redeveloper receives rental payments from tenants of the project in excess of the amounts necessary to defray the operating costs of the project, together with any debt service on bonds issued to finance the project, not less than 75 percent of the excess payments shall be deposited into a non-lapsing fund maintained by the local government redeveloper and used exclusively for the maintenance or additional production of social housing projects.

d. Prior to considering an application submitted by a local government redeveloper, the agency shall confirm with the Department of Labor and Workforce Development, the Department of Environmental Protection, and the Department of the Treasury whether the local government redeveloper is in substantial good standing with the respective department or has entered into an agreement with the respective department that includes a practical corrective action plan for the local government redeveloper. The local government redeveloper shall certify that any contractors or subcontractors that will perform work at the redevelopment project: (1) are registered as required by "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.); (2) have not been debarred by the Department of Labor and Workforce Development from engaging in or bidding on Public Works Contracts in the State; and (3) possess a tax clearance certificate issued by the Division of Taxation in the Department of the Treasury. The agency may also contract with an independent third party to perform a background check on the local government redeveloper.

4. (New section) a. A local government redeveloper seeking an incentive award for social housing projects eligible pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall submit an application to the agency in a form and manner prescribed in regulations adopted by the agency pursuant to section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill). At the time of application, a local government redeveloper shall be subject to a non-refundable application fee not to exceed $10,000.

b. If at any time during the eligibility period the agency determines that the local government redeveloper made a material misrepresentation on the local government redeveloper’s application, the local government redeveloper shall forfeit the incentive award.

c. If circumstances require a local government redeveloper to amend its application to the agency, then the local government redeveloper, or an authorized agent of the local government redeveloper, shall certify to the agency that the information provided in its amended application is true under the penalty of perjury.

5. (New section) a. For social housing projects eligible pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the agency shall award incentive awards based on the order in which complete, qualifying applications are received by the agency. If a local government redeveloper intends to apply to both the authority and the agency for subsidies, the local government redeveloper shall notify the authority simultaneously with any application made to the agency. The agency shall transmit its grant determination for such residential projects to the authority along with any information developed by the agency and confirmation of the agency’s intent to provide an incentive award or award to the project. The authority shall review the project cost and shall evaluate and validate the project financing gap estimated by the local government redeveloper.

b. Prior to allocating an incentive award to a social housing project, the agency shall confirm with the Department of Labor and Workforce Development, the Department of Environmental Protection, and the Department of the Treasury that the local government redeveloper is in substantial good standing with the respective department, or a local government redeveloper not in substantial good standing with each department has entered into an agreement with the respective department that includes a practical corrective action plan for the local government redeveloper, and that the local government redeveloper shall confirm that each contractor or subcontractor performing work at the social housing project: (1) is registered as required by "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.); (2) has not been debarred by the Department of Labor and Workforce Development from engaging in or bidding on Public Works Contracts in the State; and (3) possesses a tax clearance certificate issued by the Division of Taxation in the Department of the Treasury. The agency may also contract with an independent third party to perform a background check on the local government redeveloper. Provided that the local government redeveloper, and all contractors and subcontractors, are in compliance with this subsection, the agency shall allocate incentive awards to social housing projects according to the social housing project's score and until either the available incentive awards are exhausted or all social housing projects obtaining the minimum score receive an incentive award, whichever occurs first. If insufficient funding exists to fully fund all eligible projects, a project may be offered partial funding.

6. (New section) a. Following approval and selection of an application pursuant to sections 4 and 5 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill), the agency shall enter into an incentive award agreement with the local government redeveloper. The executive director of the agency shall negotiate the terms and conditions of the incentive award agreement on behalf of the State.

b. An incentive award agreement shall specify the amount of the incentive award the agency shall award to the local government redeveloper and the duration of the eligibility period. The duration of the eligibility period shall not exceed 10 years for a social housing project, except that to reduce the total value of tax credits needed to reimburse a local government redeveloper for all or part of the project financing gap of a social housing project, the agency may, in its discretion, approve a duration for the eligibility period that is shorter than the applicable maximum periods. The incentive award agreement shall provide an estimated date of completion and include a requirement for periodic progress reports, including the submittal of executed financing commitments and documents that evidence site control, provided, however, that the local government redeveloper may sell one or more buildings during the eligibility period, subject to such rules and regulations as may be adopted by the agency. If the agency does not receive periodic progress reports, or if the progress reports demonstrate unsatisfactory progress, then the agency may rescind the incentive award. The incentive award agreement may also provide for a verification of the financing gap at the time the local government redeveloper provides executed financing commitments to the agency and a verification of the local government redeveloper's projected cash flow at the time of certification that the project is completed, provided that the agency shall not resize or reduce the tax credit based on the executed financing commitments or the updated projected cash flow, but that the agency shall use the commitments and cash flow to calculate the return on investment required pursuant to subsection c. of this section.

c. The incentive award agreement shall include a requirement that the agency confirm with the Department of Environmental Protection, the Department of Labor and Workforce Development, and the Department of the Treasury that the local government redeveloper is in substantial good standing with the respective department, or the local government redeveloper has entered into an agreement with the respective department that includes a practical corrective action for the local government redeveloper, and the local government redeveloper shall confirm that each contractor or subcontractor performing work at the social housing project: (1) is registered as required by "The Public Works Contractor Registration Act," P.L.1999, c.238 (C.34:11-56.48 et seq.); (2) has not been debarred, suspended, or disqualified by the Department of Labor and Workforce Development from engaging in or bidding on Public Works Contracts in the State, or been debarred, suspended, or disqualified by a federal agency from engaging in federally funded construction projects or bidding on federal contracting opportunities; and (3) possesses a tax clearance certificate issued by the Division of Taxation in the Department of the Treasury. The incentive award agreement shall also include a provision that the local government redeveloper shall forfeit the incentive award in any year in which the local government redeveloper is neither in substantial good standing with each department nor has entered into a practical corrective action. The incentive award agreement shall also require a local government redeveloper to engage in on-site consultations with the Division of Workplace Safety and Health in the Department of Health.

d. A local government redeveloper shall submit, prior to the first disbursement of tax credits under the incentive award agreement, but no later than six months following project completion, satisfactory evidence of actual project costs, as certified by a certified public accountant, evidence of a temporary certificate of occupancy, or other event evidencing project completion that begins the eligibility period indicated in the incentive award agreement. The local government redeveloper, or an authorized agent of the local government redeveloper, shall certify that the information provided pursuant to this subsection is true under the penalty of perjury. Claims, records, or statements submitted by a local government redeveloper to the agency in order to receive tax credits shall not be considered claims, records, or statements made in connection with State tax laws.

e. The incentive award agreement shall include a provision allowing the agency to extend, in individual cases, the deadline for any annual reporting or certification requirement.

f. The incentive award agreement shall include one or more provisions, as determined by the agency, concerning the terms and conditions for default and the remedies for the local government redeveloper in the event of default. The incentive award agreement shall not allow the agency to declare a cross-default when the local government redeveloper, including any business affiliate of the local government redeveloper or any other entity with common principals as the local government redeveloper, is in default with any other assistance program administered by the agency.

g. For a social housing project, the incentive award agreement shall include a requirement that upon completion of the project if, during any year, the local government redeveloper receives rental payments from tenants of the project in excess of the amounts necessary to defray the operating costs of the project, together with any debt service on bonds issued to finance the project, not less than 75 percent of the excess payments shall be deposited into a non-lapsing fund maintained by the local government redeveloper and used exclusively for the maintenance or additional production of social housing projects.

7. (New section) a. Up to the limits established in this section and in accordance with an incentive award agreement, beginning upon the receipt of occupancy permits for any portion of the social housing project, or upon any other event evidencing project completion as set forth in the incentive award agreement, a local government redeveloper shall be allowed a total tax credit that shall not exceed: 85 percent of the eligible project cost for a social housing project constructed under a project labor agreement; or 80 percent of the eligible project cost for a social housing project not constructed under a project labor agreement.

b. The value of all tax credits approved by the agency under the program for a social housing project shall not exceed $225,000,000 per social housing project.

c. The agency shall not approve a total amount of tax credits greater than $475,000,000 for all social housing projects approved under the program.

8. (New section) a. A local government redeveloper approved for an incentive award pursuant to sections 4 and 5 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill) and that enters an incentive award agreement pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall submit annually, commencing in the year in which the incentive award is issued and for the remainder of the eligibility period, a report indicating whether the local government redeveloper is aware of any condition, event, or act that would cause the local government redeveloper not to be in compliance with the incentive award agreement or the provisions of sections 2 through 12 of P.L. , c. (C. through C. ) (pending before the Legislature as this bill) and any additional reporting requirements contained in the incentive award agreement or tax credit certificate. The local government redeveloper, or an authorized agent of the local government redeveloper, shall certify that the information provided pursuant to this subsection is true under the penalty of perjury.

b. (1) Upon receipt and review of each report submitted during the eligibility period, the agency shall provide to the local government redeveloper and the director a certificate of compliance indicating the amount of tax credits that the local government redeveloper may apply against the local government redeveloper's tax liability. Notwithstanding any provision of law or regulation to the contrary, the agency shall not require the local government redeveloper to include a permanent certificate of occupancy in the first annual report, but the local government redeveloper shall include the permanent certificate of occupancy in the next annual report after the local government redeveloper receives the permanent certificate of occupancy. Subject to forfeiture, reduction, or other action for failure to comply with a program requirement, within 120 days after the agency preliminarily determines that an annual report is complete, the agency shall either: (a) approve the annual report and notify the director that the agency has approved the report and that the director is to issue the tax credit certificate; or (b) request more information from the local government redeveloper to finalize the approval. If the agency fails to act within 120 days from its preliminary determination that the annual report is complete, the annual report shall be deemed approved by the agency, and the local government redeveloper shall be entitled to receive its tax credit certificate.

(2) Upon receipt by the director of the certificate of compliance, the director shall allow the local government redeveloper a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5). A local government redeveloper shall apply the credit awarded against the local government redeveloper's liability under section 5 of P.L.1945, c.162 (C.54:10A-5), sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and C.54:18A-3), section 1 of P.L.1950, c.231 (C.17:32-15), or N.J.S.17B:23-5 in the tax period for which it was issued, in the tax period in which it was issued, or in any tax period during the eligibility period without the need to amend the tax return for the tax period for which the credit was issued, subject to the carry-forward provision in this section. Notwithstanding the foregoing, no more than the amount of tax credits equal to the total credit amount divided by the duration of the tax credit term, in years, may be taken in any tax period. A local government redeveloper may carry forward an unused credit resulting from the limitations of paragraph (3) of this subsection, if necessary, for use in the seven privilege periods next following the privilege period for which the credits are applied. Credits granted to a partnership shall be passed through to the partners, members, or owners, respectively, pro-rata, or pursuant to an executed agreement among the partners, members, or owners documenting an alternate distribution method provided to the director accompanied by any additional information as the director may prescribe.

(3) The director shall prescribe the order of priority of the application of the credit allowed under this section and any other credits allowed by law against the tax imposed under section 5 of P.L.1945, c.162 (C.54:10A-5). The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5) for a privilege period, together with any other credits allowed by law, shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162 (C.54:10A-5).

9. (New section) a. (1) A local government redeveloper may apply to the director and the agency for a tax credit transfer certificate, covering one or more years, in lieu of the local government redeveloper being allowed any amount of the credit against the tax liability of the local government redeveloper. Subject to the forfeiture, reduction, or other action for failure to comply with a program requirement, within 120 days after the agency preliminarily determines that an application is complete, the agency shall either: (a) approve the application and notify the director that the agency has approved the application and that the director is to issue the tax credit transfer certificate; or (b) request more information from the local government redeveloper to finalize the approval. If the agency fails to act within 120 days from its preliminary determination that the application is complete, the application shall be deemed approved by the agency, and the local government redeveloper shall be entitled to receive its tax credit transfer certificate.

(2) The tax credit transfer certificate, upon receipt thereof by the local government redeveloper from the director and the agency, may be sold or assigned, in full or in part in an amount not less than $25,000, in the privilege period during which the local government redeveloper receives the tax credit transfer certificate from the director, to another person, who may apply the credit against a tax liability pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), sections 2 and 3 of P.L.1945, c.132 (C.54:18A-2 and C.54:18A-3), section 1 of P.L.1950, c.231 (C.17:32-15), or N.J.S.17B:23-5. The certificate provided to the local government redeveloper shall include a statement waiving the local government redeveloper's right to claim the amount of the credit that the local government redeveloper has elected to sell or assign against the local government redeveloper's tax liability.

b. The local government redeveloper shall not sell or assign, including a collateral assignment, a tax credit transfer certificate allowed under this section for consideration received by the local government redeveloper of less than 85 percent of the transferred credit amount before considering any further discounting to present value which shall be permitted, except a local government redeveloper of a social housing project consisting of newly-constructed residential units may assign a tax credit transfer certificate for consideration of less than 85 percent subject to the submission of a plan to the agency to use the proceeds derived from the assignment of tax credits to complete the social housing project, except a local government redeveloper of a social housing project consisting of newly-constructed residential units that has received federal low income housing tax credits under 26 U.S.C. s.42(b)(1)(B)(i) may assign a tax credit transfer certificate for consideration of no less than 65 percent subject to the submission of a plan to the agency to use the proceeds derived from the assignment of tax credits to complete the social housing project. The tax credit transfer certificate issued to a local government redeveloper by the director shall be subject to any limitations and conditions imposed on the application of State tax credits pursuant to sections 2 through 12 of P.L. , c. (C. through ) (pending before the Legislature as this bill) and any other terms and conditions that the director may prescribe, provided, however, that the holder of a tax credit certificate may transfer all or part of the tax credit amount, on or after the date of issuance of the tax credit transfer certificate, for use by the transferee in the tax period for which it was issued, in the tax period in which it was issued, or in any of the next three successive tax periods. The tax certificate holder or transferee may first use the credit against tax liabilities in the tax period in which it was issued or in a succeeding tax period, as authorized in this subsection, without the need to amend the tax return for the tax period for which the credit was issued, subject to the provisions of this section. A transferee may carry forward an unused credit for use in any of the next five successive tax periods, and the unused credit shall expire thereafter. Notwithstanding any provision of this section to the contrary, the amount of tax credits that may be claimed by the transferee in any tax period shall not exceed the total tax credit amount divided by the duration of the eligibility period in years.

c. A purchaser or assignee of a tax credit transfer certificate pursuant to this section shall not make any subsequent transfers, assignments, or sales of the tax credit transfer certificate.

d. The agency shall publish on its Internet website the following information concerning each tax credit transfer certificate approved by the agency and the director pursuant to this section:

(1) the name of the transferor;

(2) the name of the transferee;

(3) the value of the tax credit transfer certificate; and

(4) the consideration received by the transferor.

10. (New section) a. A local government redeveloper who has entered into an incentive award agreement pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) may, upon notice to and written consent of the agency and State Treasurer, pledge, assign, transfer, or sell any or all of its right, title, and interest in and to the incentive award agreement and in the incentive awards payable under the incentive award agreement, and the right to receive the incentive awards, along with the rights and remedies provided to the local government redeveloper under the incentive award agreement. Any assignment shall be an absolute assignment for all purposes, including the federal bankruptcy code.

b. Any pledge of an incentive award made by the local government redeveloper shall be valid and binding from the time the pledge is made and filed in the records of the agency. The incentive award pledged and thereafter received by the local government redeveloper shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the local government redeveloper irrespective of whether the parties have notice thereof. As a condition of any incentive award, the grantee, assignee, pledgee or subsequent holder of the incentive award shall immediately file notice of the same with the clerk of the county in which the project is located.

c. The agency shall publish on its Internet website the following information concerning each pledge, assignment, transfer, or sale approved by the agency pursuant to this section:

(1) the name of the person or entity offering the pledge, assignment, transfer, or sale of a right, title, or interest in an incentive grant agreement or tax credit agreement;

(2) the name of the person or entity receiving the pledge, assignment, transfer, or sale of a right, title, or interest in the incentive grant agreement or tax credit agreement;

(3) the value of the right, title, or interest in the incentive grant agreement or tax credit agreement; and

(4) the consideration received by the person or entity offering the pledge, assignment, transfer, or sale of the right, title, or interest in the incentive grant agreement or tax credit agreement.

11. (New section) Beginning the year next following the year in which P.L. , c. (C. ) (pending before the Legislature as this bill) takes effect and every two years thereafter, the agency shall select a State college or university established pursuant to chapter 64 of Title 18A of the New Jersey Statutes to prepare a report, pursuant to an agreement executed between the State college or university and the agency, concerning the implementation of the program, and submit the report to the agency, the Governor, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature. Each biennial report required under this section shall include a description of each social housing project receiving a tax credit under the program, a detailed analysis of the consideration given in each project to the factors set forth in sections 4 and 5 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill), and any other metrics the State college or university determines are relevant based upon national best practices.

12. (New section) Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, except as otherwise provided in subsection b. of this section, the executive director of the agency may adopt, immediately, upon filing with the Office of Administrative Law, regulations that the executive director deems necessary to implement the provisions of sections 2 through 12 of P.L. , c. (C. through ) (pending before the Legislature as this bill), which regulations shall be effective for a period not to exceed 180 days from the date of the filing. The executive director shall thereafter amend, adopt, or readopt the regulations in accordance with the requirements of P.L.1968, c.410 (C.52:14B-1 et seq.).

13. (New section) a. Within one calendar year of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the New Jersey Housing and Mortgage Finance Agency shall establish a Workforce Housing Investment Program for the purposes of facilitating the financing of certified workforce housing projects. The New Jersey Housing and Mortgage Finance Agency, in collaboration with the New Jersey Economic Development Authority, shall review applications under the program established pursuant to this section, submitted in such form and manner as the agency may require.

b. A developer of a workforce housing project is eligible for certification of a workforce housing project pursuant to this section if the project:

(1) is located in a transit-oriented, high-pedestrian, or walkable area or is located in a former Brownfield site as defined by section 10 of P.L.2020, c.156 (C.34:1B-278);

(2) reserves at least 20 percent of the residential units included in the project for workforce housing;

(3) is constructed under a project labor agreement;

(4) is affiliated with a registered apprenticeship program;

(5) contains a minimum capital investment provided by the developer of the project of at least 30 percent of total project costs; and

(6) adheres to monitoring standards, as determined by the agency.

c. A developer of a workforce housing project may submit evidence of investment by the manager of a pension fund for private-sector employees in the development of the project. If a developer submits such evidence, then the agency shall provide the evidence to the Division of Investment in the Department of the Treasury.

d. The agency shall review an application for the Workforce Housing Investment Program pursuant to this section. Upon approval of an application, the agency shall provide a written certification that the project is a workforce housing project to:

(1) the Division of Investment in the Department of the Treasury for the purpose of consideration of investment in the workforce housing project pursuant to section 14 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(2) the New Jersey Infrastructure Bank for the purpose of determining eligibility of the developer for a loan pursuant to section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill).

e. The New Jersey Housing and Mortgage Finance Agency, in consultation with the New Jersey Economic Development Authority, shall promulgate any rules and regulations necessary to effectuate the provisions of this section.

14. (New section) Subject to and consistent with the fiduciary duties and the standard for prudent investment set forth in section 11 of P.L.1950, c.270 (C.52:18A-89):

a. upon receipt of a certification that a project is a workforce housing project, pursuant to section 13 of P.L. , c. (C. ) (pending before Legislature as this bill), the Division of Investment in the Department of the Treasury and the State Investment Council shall consider investing State funds or assets, as appropriate, in the development of the project;

b. the division and council may invest a minimum of five percent of funds in the development of affordable housing or workforce housing, including, but not limited to, a workforce housing project, pursuant to subsection a. of this section; and

c. the division and council shall consider making an investment equal in value to any private investment for which evidence is provided pursuant to subsection c. of section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill).

15. (New section) a. There is established the “Interagency Task Force on Public Land for Housing” in the Department of the Treasury. The purpose of the task force is to determine public lands that are underutilized and may be suitable for the development of workforce housing projects under the Workforce Housing Investment Program established pursuant to section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill). The task force shall organize within 90 days of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).

b. The task force shall consist of eight members as follows:

(1) the Chief Executive Officer of the New Jersey Economic Development Authority, or the officer's designee;

(2) the Director of the Division of Investment in the Department of the Treasury, or the director's designee;

(3) the Executive Director of the New Jersey Housing and Mortgage Finance Agency, or the executive director's designee;

(4) the Chairperson of the New Jersey Infrastructure Bank, or the chairperson's designee;

(5) two public members, one to be appointed by the Senate President and one to be appointed by the Senate Minority Leader, both of whom shall have expertise in at least one of the following categories: economic development; finance; investing; or the administration of affordable housing programs; and

(6) two public members, one to be appointed by the Speaker of the General Assembly and one to be appointed by the Assembly Minority Leader, both of whom shall have expertise in at least one of the following categories: economic development; finance; investing; or the administration of affordable housing programs.

c. Within three months following initial organization, the task force shall publish a report recommending rules and regulations to increase coordination among State entities, counties, and municipalities in order to reduce unnecessary administrative delays and improve the efficiency of the review process for applications submitted under the Workforce Housing Investment Program, established pursuant to section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill). The task force may recommend new rules and regulations, revisions to existing rules and regulations, and the removal of existing rules and regulations.

d. Following the publication of the report required pursuant to subsection c. of this section, the New Jersey Economic Development Authority and the New Jersey Housing and Mortgage Finance Agency shall consider, and to the extent feasible, implement the recommendations provided by the task force.

e. Within six months following initial organization, the task force shall publish a report recommending ways in which the State, counties, and municipalities can utilize existing financial structures and practices to invest funds, increase revenues, and develop workforce housing projects under the Workforce Housing Investment Program, established pursuant to section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill).

f. Within one calendar year following initial organization, the task force shall publish a comprehensive report recommending sites of public land in the State that are suitable for the development of workforce housing projects under the Workforce Housing Investment Program, established pursuant to section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill). The task force shall list the identified sites in order of priority, beginning with sites that are capable of supporting workforce housing projects that include at least 100 housing units.

g. The task force shall provide copies of the reports required under this section to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature on its findings and recommendations. The reports shall be made available to the public on the Internet website of the Division of Investment.

h. The task force shall expire 30 days following the issuance of the report pursuant to subsection e. of this section.

16. (New section) The New Jersey Economic Development Authority shall prioritize the approval of any complete application submitted for any program administered by the authority, which application concerns a project that includes the development of:

a. affordable housing or workforce housing, as those terms are defined in section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), that is situated on land owned by a unit of local government; or

b. affordable housing in excess of the minimum affordable housing requirements for the program under which the application is submitted.

17. (New section) a. The New Jersey Housing and Mortgage Finance Agency shall prioritize the approval of any complete application submitted for any program administered by the agency, which application concerns a project that includes the development of:

b. affordable housing in excess of the minimum affordable housing requirements for the program under which the application is submitted.

18. (New section) a. There is established in the New Jersey Infrastructure Bank a special fund to be known as the Human Infrastructure Bank Fund. The Human Infrastructure Bank Fund shall be credited with:

(1) any funds appropriated by the Legislature for the purpose of issuing loans pursuant to this section;

(2) all moneys received as repayment of the principal of, and the interest or premium on, loans made from the Human Infrastructure Bank Fund;

(3) any interest earnings received on the moneys in the Human Infrastructure Bank Fund; and

(4) such other moneys received or made available to finance or refinance loans issued from the Human Infrastructure Bank Fund.

b. Notwithstanding any provision of law to the contrary, all moneys placed into the Human Infrastructure Bank Fund shall be held separate from other funds of the trust, and no infrastructure funds shall be combined or comingled with any funds that finance the following project if the projects are not workforce housing projects: wastewater treatment system projects; water supply projects; other environmental infrastructure projects; or transportation projects, aviation projects, or marine projects.

c. Notwithstanding any provision of law to the contrary, the trust may provide loans to the developer of a project that is certified by the New Jersey Housing and Mortgage Finance Agency as a workforce housing project pursuant to section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill), which loans may finance all or part of the costs incurred by the developer for the planning, acquisition, engineering, construction, reconstruction, repair, and rehabilitation of the workforce housing project.

d. The trust shall consider the following factors when setting an interest rate on a loan provided pursuant to this section:

(1) the current market rates for comparable obligations;

(2) the nature of the project;

(3) the financing structure of the project;

(4) the creditworthiness of the borrower; and

(5) the term of the proposed obligation.

e. The trust may establish or direct the establishment of such State accounts or subaccounts as may be necessary to meet any applicable legal requirements or desirable for the efficient administration of the trust.

19. Section 3 of P.L.1985, c.334 (C.58:11B-3) is amended to read as follows:

3. As used in sections 1 through 27 of P.L.1985, c.334 (C.58:11B-1 through C.58:11B-27), sections 23 through 27 of P.L.1997, c.224 (C.58:11B-10.1, C.58:11B-20.1, C.58:11B-21.1, C.58:11B-22.1, and C.58:11B-22.2), [and] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), and section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill):

"Aviation project" means a project to develop or improve county or municipal airport facilities, or airport facilities owned or operated by a regional transportation authority that is not a bi-state authority, and related infrastructure or capital equipment, including, but not limited to, any design, planning, acquisition, construction, reconstruction, relocation, installation, removal, repair, or rehabilitation project that facilitates, increases the efficiency of, or improves the capacity for inter-modal trade for commercial and industrial facilities that are part of airport facilities. "Aviation project" includes, but is not limited to, any project to develop or improve terminal facilities designed for public use and for the transportation of persons or property, such as airports, runways, berms, basins, storage places, sheds, warehouses, and related infrastructure;

"Bonds" means bonds issued by the trust pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.);

"Combined sewer overflow" means the discharge of untreated or partially treated stormwater runoff and wastewater from a combined sewer system into a body of water;

"Combined sewer system" means a sewer system designed to carry sanitary wastewater at all times, which is also designed to collect and transport stormwater runoff from streets and other sources, thereby serving a combined purpose;

"Commissioner" means the Commissioner of the Department of Environmental Protection;

"Cost" means the cost of all labor, materials, machinery and equipment, lands, property, rights and easements, financing charges, interest on bonds, notes or other obligations, plans and specifications, surveys or estimates of costs and revenues, engineering and legal services, and all other expenses necessary or incident to all or part of an environmental infrastructure project;

"Department" means the Department of Environmental Protection;

"Environmental infrastructure project" means the acquisition, construction, improvement, repair or reconstruction of all or part of any structure, facility or equipment, or real or personal property necessary for or ancillary to any: (1) wastewater treatment system project, including any stormwater management or combined sewer overflow abatement projects; or (2) water supply project, as authorized pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.), including any water resources project, as authorized pursuant to P.L.2003, c.162;

"Federal infrastructure bank program" means the United States Department of Transportation State Infrastructure Bank Program provided for in section 350 of Pub.L.104-59 and Pub.L.102-240 as amended or superseded;

"Local government unit" means (1) a State authority, county, municipality, municipal, county or regional sewerage or utility authority, municipal sewerage district, joint meeting, improvement authority, or any other political subdivision of the State authorized to construct, operate, and maintain wastewater treatment systems; (2) a State authority, district water supply commission, county, municipality, municipal, county or regional utilities authority, municipal water district, joint meeting, or any other political subdivision of the State authorized pursuant to law to operate or maintain a public water supply system or to construct, rehabilitate, operate, or maintain water supply facilities or otherwise provide water for human consumption; (3) a county, municipality, municipal, county or regional transportation authority, or any other political subdivision of the State authorized to construct, operate, or maintain public highways or transportation projects; (4) a county, municipality, or other political subdivision or instrumentality of the State, or a municipal, county, or State authority that is not a bi-state authority, authorized to construct, operate, or maintain ports or marine projects; (5) a county, municipality, municipal or regional transportation authority, or other political subdivision or instrumentality of the State authorized to construct, operate, or maintain airports or aviation projects; or (6) a local government unit as defined in section 2 of P.L.2023, c.63 (C.58:11B-20.4) authorized to receive funds pursuant to the "Safeguarding Tomorrow Through Ongoing Risk Mitigation (STORM) Act," Pub.L. 116-284 (42 U.S.C. s.5135), as amended or supplemented, and P.L.2023, c.63 (C.58:11B-20.3 et al.);

"Marine project" means a project to develop or improve public port or terminal facilities, and related infrastructure or capital equipment, including, but not limited to, any design, planning, acquisition, construction, reconstruction, relocation, installation, removal, repair, or rehabilitation project that facilitates, increases the efficiency of, or improves the capacity for inter-modal trade and cargo movement for commercial or industrial facilities that are part of port or terminal facilities. "Marine project" includes, but is not limited to, dredging, soil hardening, and paving of the port facilities, and ferry terminal facilities designed for public use and the transportation of persons or property such as water craft, docks, wharves, piers, slips, storage places, sheds, warehouses, and related infrastructure. "Marine project" shall not include any project that relates to or supports recreational or commercial boating activities;

"New Jersey Environmental Infrastructure Financing Program" means the financing program to fund environmental infrastructure projects;

"New Jersey Transportation Infrastructure Financing Program" means the financing program to fund transportation projects, aviation projects, and marine projects;

"Notes" means notes issued by the trust pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4);

"Onsite wastewater treatment and disposal system" means an onsite system designed to treat and dispose of domestic sewage;

"Other assistance" means forms of financial assistance, in addition to loans, authorized by the New Jersey Infrastructure Bank from the State Transportation Infrastructure Bank Fund, the wastewater treatment system general loan fund, the water supply facilities general loan fund, or 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, but not limited to, use of funds to: provide credit enhancements, serve as a capital reserve for bond or other debt instrument financing, subsidize interest rates, ensure the issuance of letters of credit and credit instruments, finance purchase and lease agreements with respect to transit projects, and provide bond or other debt financing instrument security;

"Planning, design, and construction loan" means a short-term or temporary loan for eligible costs incurred in project planning, engineering design, or construction issued before or during the planning stage of a project;

"Project" means the acquisition, construction, improvement, repair or reconstruction of all or part of any structure, facility, or equipment, or real or personal property necessary for or ancillary to any: (1) wastewater treatment system project, including any stormwater management or combined sewer overflow abatement projects; (2) water supply project, as authorized pursuant to P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.), including any water resources project, as authorized pursuant to P.L.2003, c.162; [or] (3) transportation project, aviation project, or marine project authorized pursuant to sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4); or (4) workforce housing project certified pursuant to section 13 of P.L. , c. (C. ) (pending before the Legislature as this bill);

"Public highway" means public roads, streets, expressways, freeways, parkways, motorways and boulevards, including bridges, tunnels, overpasses, underpasses, interchanges, express bus roadways, bus pullouts and turnarounds, park-ride facilities, traffic circles, grade separations, traffic control devices, the elimination or improvement of crossings of railroads and highways, whether at-grade or not at-grade, bicycle and pedestrian pathways and pedestrian and bicycle bridges, and any property, rights of way, easements and interests therein needed for the construction, improvement, and maintenance of highways;

"Public water utility" means any investor-owned water company or small water company;

"Small water company" means any company, purveyor, or entity, other than a governmental agency, that provides water for human consumption and which regularly serves less than 1,000 customer connections, including nonprofit, noncommunity water systems owned or operated by a nonprofit group or organization;

"Stormwater management system" means any equipment, plants, structures, machinery, apparatus, management practices, or land, or any combination thereof, acquired, used, constructed, implemented, or operated to prevent nonpoint source pollution, abate improper cross-connections and interconnections between stormwater and sewer systems, minimize stormwater runoff, reduce soil erosion, or induce groundwater recharge, or any combination thereof;

"Transportation project" means a capital project for public highways, approach roadways, and other necessary land-side improvements, ramps, signal systems, roadbeds, transit lanes or rights of way, related transmission and distribution lines, pedestrian walkways and bridges connecting to passenger stations and servicing facilities, bridges, and grade crossings;

"Trust" means the New Jersey Infrastructure Bank created pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4);

"Wastewater" means residential, commercial, industrial, or agricultural liquid waste, sewage, septage, stormwater runoff, or any combination thereof, or other liquid residue discharged or collected into a sewer system or stormwater management system, or any combination thereof;

"Wastewater treatment system" means any equipment, plants, structures, machinery, apparatus, or land, or any combination thereof, acquired, used, constructed or operated by, or on behalf of, a local government unit for the storage, collection, reduction, recycling, reclamation, disposal, separation, or other treatment of wastewater or sewage sludge, or for the collection or treatment, or both, of stormwater runoff and wastewater, or for the final disposal of residues resulting from the treatment of wastewater, including, but not limited to, pumping and ventilating stations, treatment plants and works, connections, outfall sewers, interceptors, trunk lines, stormwater management systems, and other personal property and appurtenances necessary for their use or operation; "wastewater treatment system" shall include a stormwater management system or a combined sewer system;

"Wastewater treatment system project" means any work relating to the acquisition, construction, improvement, repair or reconstruction of all or part of any structure, facility or equipment, or real or personal property necessary for or ancillary to any wastewater treatment system that meets the requirements set forth in sections 20, 21, and 22 of P.L.1985, c.334 (C.58:11B-20, C.58:11B-21, and C.58:11B-22); or any work relating to any of the stormwater management or combined sewer overflow abatement projects identified in the stormwater management and combined sewer overflow abatement project priority list adopted by the commissioner pursuant to section 28 of P.L.1989, c.181; or any work relating to the purposes set forth in section 6 of P.L.2003, c.162; or any work relating to any other project eligible for financing under the "Federal Water Pollution Control Act Amendments of 1972" (33 U.S.C. s.1251 et seq.), or any amendatory or supplementary acts thereto;

"Water resources project" means any work related to transferring water between public water systems during a state of water emergency, to avert a drought emergency in all or any part of the State, to plan, design or construct interconnections of existing water supplies, or to extend water supplies to areas with contaminated ground water supplies;

"Water supply facilities" means and refers to the real property and the plants, structures, interconnections between existing water supply facilities, machinery and equipment and other property, real, personal and mixed, acquired, constructed or operated, or to be acquired, constructed or operated, in whole or in part, by or on behalf of a public water utility, or by or on behalf of the State or a local government unit, for the purpose of augmenting the natural water resources of the State and making available an increased supply of water for all uses, or of conserving existing water resources, and any and all appurtenances necessary, useful or convenient for the collecting, impounding, storing, improving, treating, filtering, conserving or transmitting of water, and for the preservation and protection of these resources and facilities, whether in public or private ownership, and providing for the conservation and development of future water supply resources, and facilitating incidental recreational uses thereof;

"Water supply project" means any work relating to the acquisition, construction, improvement, repair or reconstruction of all or part of any structure, facility or equipment, or real or personal property necessary for or ancillary to water supply facilities that meets the requirements set forth in sections 24, 25, and 26 of P.L.1997, c.224 (C.58:11B-20.1, C.58:11B-21.1, and C.58:11B-22.1); or any work relating to the purposes set forth in section 4 of P.L.1981, c.261; or any work relating to the purposes set forth in section 6 of P.L.2003, c.162; or any work relating to any other project eligible for funding pursuant to the federal "Safe Drinking Water Act Amendments of 1996," Pub.L.104-182, and any amendatory and supplementary acts thereto.

(cf: P.L.2025, c.14, s.1)

20. Section 4 of P.L.1985, c.334 (C.58:11B-4) is amended to read as follows:

4. a. There is established in, but not of, the Department of the Treasury a body corporate and politic, with corporate succession, to be known as the "New Jersey Infrastructure Bank." The trust is constituted as an instrumentality of the State exercising public and essential governmental functions, no part of whose revenues shall accrue to the benefit of any individual, and the exercise by the trust of the powers conferred by the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be deemed and held to be an essential governmental function of the State.

b. The trust shall consist of a 10 member board of directors composed of the State Treasurer, the Commissioner of the Department of Community Affairs, the Commissioner of the Department of Transportation, and the Commissioner of the Department of Environmental Protection, who shall be members ex officio; two people appointed by the Governor upon the recommendation of the President of the Senate, and two people appointed by the Governor upon the recommendation of the Speaker of the General Assembly, who shall serve during the two-year legislative term in which they are appointed; and two residents of the State appointed by the Governor with the advice and consent of the Senate, who shall serve for terms of four years, except that the first two appointed shall serve terms of two and three years respectively. Each appointed director shall serve until that director's successor has been appointed and qualified. A director is eligible for reappointment. Any vacancy shall be filled in the same manner as the original appointment, but for the unexpired term only.

With respect to those public members first appointed by the Governor, the appointment of each of the two members upon the advice and consent of the Senate shall become effective 30 days after their nomination by the Governor if the Senate has not given advice and consent on those nominations within that time period; the President of the Senate and the Speaker of the General Assembly each shall recommend to the Governor a public member for appointment within 20 days following the effective date of P.L.1985, c.334 (C.58:11B-1 et seq.) and a public member for appointment within 20 days following the effective date of P.L.2016, c.56 and a recommendation made in this manner shall become effective if the Governor makes the appointment in accordance with the recommendation, in writing, within 10 days of the Governor's receipt thereof. In each instance where the Governor fails to make the appointment, the President of the Senate and the Speaker of the General Assembly shall make new recommendations subject to appointment by the Governor as determined in this section.

c. Each appointed director may be removed from office by the Governor for cause, upon the Governor's consideration of the findings and recommendations of an administrative law judge after a public hearing before the judge, and may be suspended by the Governor pending the completion of the hearing. Each director, before entering upon the director's duties, shall take and subscribe an oath to perform the duties of the director's office faithfully, impartially and justly to the best of the director's ability. A record of oaths shall be filed in the office of the Secretary of State.

d. The Governor shall designate one of the appointed members to be the chairperson and chief executive officer of the trust and the directors shall biannually elect a vice-chairperson from among the appointed directors. The chairperson shall serve as such for a term of two years and until a successor has been designated. A chairperson shall be eligible for one additional two-year term as chairperson. The directors shall elect a secretary and treasurer, who need not be directors, and the same person may be elected to serve as both secretary and treasurer.

The powers of the trust are vested in the directors in office from time to time and six directors shall constitute a quorum at any meeting. Action may be taken and motions and resolutions adopted by the trust by the affirmative majority vote of those directors present, but in no event shall any action be taken or motions or resolutions adopted without the affirmative vote of at least six directors. No vacancy on the board of directors of the trust shall impair the right of a quorum of the directors to exercise the powers and perform the duties of the trust.

e. Each director and the treasurer of the trust shall execute a bond to be conditioned upon the faithful performance of the duties of the director or treasurer in a form and amount as may be prescribed by the State Treasurer. Bonds shall be filed in the office of the Secretary of State. At all times thereafter, the directors and treasurer shall maintain these bonds in full effect. All costs of the bonds shall be borne by the trust.

f. The directors of the trust shall serve without compensation, but the trust shall reimburse the directors for actual and necessary expenses incurred in the performance of their duties. Notwithstanding the provisions of any other law to the contrary, no officer or employee of the State shall be deemed to have forfeited or shall forfeit the officer's or employee's office or employment or any benefits or emoluments thereof by reason of the officer's or employee's acceptance of the office of ex officio director of the trust or the ex officio director's services thereon.

g. Each ex officio director may designate an officer of the ex officio director's department to represent the ex officio director at meetings of the trust. Each designee may lawfully vote and otherwise act on behalf of the director for whom the person constitutes the designee. The designation shall be delivered in writing to the trust and shall continue in effect until revoked or amended in writing and delivered to the trust.

h. The trust may be dissolved by law; provided the trust has no debts or obligations outstanding or that provision has been made for the payment or retirement of these debts or obligations. The trust shall continue in existence until dissolved by act of the Legislature. Upon any dissolution of the trust, all property, funds and assets of the trust shall be vested in the State.

i. A true copy of the minutes of every meeting of the trust shall be forthwith delivered by and under the certification of the secretary thereof to the Governor and at the same time to the Senate and General Assembly. The time and act of this delivery shall be duly recorded on a delivery receipt. No action taken or motion or resolution adopted at a meeting by the trust shall have effect until 10 days, exclusive of Saturdays, Sundays and public holidays, after a copy of the minutes has been delivered to the Governor, unless during the 10-day period the Governor shall approve all or part of the actions taken or motions or resolutions adopted, in which case the action or motion or resolution shall become effective upon the approval.

If, in the 10-day period, the Governor returns the copy of the minutes with a veto of any action taken by the trust or any member thereof at that meeting, the action shall be of no effect. The Senate or General Assembly shall have the right to provide written comments concerning the minutes to the Governor within the 10-day period, which comments shall be returned to the trust by the Governor with the Governor's approval or veto of the minutes.

The powers conferred in this subsection upon the Governor shall be exercised with due regard for the rights of the holders of bonds, notes and other obligations of the trust at any time outstanding, and nothing in, or done pursuant to, this subsection shall in any way limit, restrict or alter the obligation or powers of the trust or any representative or officer of the trust to carry out and perform each covenant, agreement, or contract made or entered into by or on behalf of the trust with respect to its bonds, notes, or other obligations or for the benefit, protection or security of the holders thereof.

j. No resolution or other action of the trust providing for the issuance of bonds, refunding bonds, notes or other obligations shall be adopted or otherwise made effective by the trust without the prior approval in writing of the Governor and the State Treasurer. The trust shall provide the Senate and General Assembly with written notice of any request for approval of the Governor and State Treasurer at the time the request is made, and shall also provide the Senate and General Assembly written notice of the response of the Governor and State Treasurer at the time that the response is received by the trust.

(cf: P.L.2016, c.56, s.13)

21. Section 5 of P.L.1985, c.334 (C.58:11B-5) is amended to read as follows:

5. Except as otherwise limited by the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), the trust may:

a. Make and alter bylaws for its organization and internal management and, subject to agreements with holders of its bonds, notes or other obligations, make rules and regulations with respect to its operations, properties and facilities;

b. Adopt an official seal and alter it;

c. Sue and be sued;

d. Make and enter into all contracts, leases and agreements necessary or incidental to the performance of its duties and the exercise of its powers under the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), and subject to any agreement with the holders of the trust's bonds, notes or other obligations, consent to any modification, amendment or revision of any contract, lease or agreement to which the trust is a party;

e. Enter into agreements or other transactions with and accept, subject to the provisions of section 23 of P.L.1985, c.334 (C.58:11B-23), grants, appropriations and the cooperation of the State, or any State agency, in furtherance of the purposes of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), and do anything necessary in order to avail itself of that aid and cooperation;

f. Receive and accept aid or contributions from any source of money, property, labor or other things of value, to be held, used and applied to carry out the purposes of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), subject to the conditions upon which that aid and those contributions may be made, including, but not limited to, gifts or grants from any department or agency of the State, or any State agency, for any purpose consistent with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), subject to the provisions of section 23 of P.L.1985, c.334 (C.58:11B-23);

g. Acquire, own, hold, construct, improve, rehabilitate, renovate, operate, maintain, sell, assign, exchange, lease, mortgage or otherwise dispose of real and personal property, or any interest therein, in the exercise of its powers and the performance of its duties under the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill);

h. Appoint and employ an executive director and any other officers or employees as it may require for the performance of its duties, without regard to the provisions of Title 11A of the New Jersey Statutes;

i. Borrow money and issue bonds, notes and other obligations, and secure the same, and provide for the rights of the holders thereof as provided in the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4);

j. Subject to any agreement with holders of its bonds, notes or other obligations, invest moneys of the trust not required for immediate use, including proceeds from the sale of any bonds, notes or other obligations, in any obligations, securities and other investments in accordance with the rules and regulations of the State Investment Council or as may otherwise be approved by the Director of the Division of Investment in the Department of the Treasury upon a finding that such investments are consistent with the corporate purposes of the trust;

k. Procure insurance to secure the payment of its bonds, notes or other obligations or the payment of any guarantees or loans made by it in accordance with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), or against any loss in connection with its property and other assets and operations, in any amounts and from any insurers as it deems desirable;

l. Engage the services of attorneys, accountants, engineers, and financial experts and any other advisors, consultants, experts and agents as may be necessary in its judgment and fix their compensation;

m. (1) Make and contract to make loans and provide other assistance to local government units, or to a local government unit on behalf of another local government unit, to finance the cost of wastewater treatment system projects or water supply projects and acquire and contract to acquire notes, bonds or other obligations issued or to be issued by any local government units to evidence the loans, all in accordance with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.);

(2) Make and contract to make loans and provide other assistance to public water utilities, or to any other person or local government unit on behalf of a public water utility, to finance the cost of water supply projects in accordance with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.);

(3) Make and contract to make loans and provide other assistance to private persons other than local government units, or to any other person or local government unit on behalf of a private person, to finance the cost of onsite wastewater treatment and disposal systems or stormwater management systems in accordance with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.);

(4) Make and contract to make loans and provide other assistance to one or more local government units or consortia thereof to finance the cost of transportation projects, aviation projects, and marine projects in accordance with applicable provisions of the federal infrastructure bank program and pursuant to sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4);

(5) Make and contract to make loans to private persons and local government units to finance the cost of workforce housing projects pursuant to section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill);

n. Subject to any agreement with holders of its bonds, notes or other obligations, purchase bonds, notes and other obligations of the trust and (1) hold the same for resale for any duration, including until maturity thereof, including in connection with any cross-investment initiative of the trust, or (2) provide for the cancellation thereof, all in accordance with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4);

o. (1) Charge to and collect from local government units, private persons, public water utilities, or nonprofit organizations any fees and charges in connection with the trust's loans, guarantees or other services, including, but not limited to, fees and charges sufficient to reimburse the trust for all reasonable costs necessarily incurred by it in connection with its financings and the establishment and maintenance of reserve or other funds, as the trust may determine to be reasonable. The fees and charges shall be in accordance with a uniform schedule published by the trust for the purpose of providing actual cost reimbursement for the services rendered;

(2) Any fees and charges collected by the trust pursuant to this subsection may be deposited and maintained in a special fund separate from any other funds held by the trust pursuant to section 10 of P.L.1985, c.334 (C.58:11B-10) [or] , section 23 of P.L.1997, c.224 (C.58:11B-10.1), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall be available for any corporate purposes of the trust;

p. Subject to any agreement with holders of its bonds, notes or other obligations, obtain as security or to provide liquidity for payment of all or any part of the principal of and interest and premium on the bonds, notes and other obligations of the trust or for the purchase upon tender or otherwise of the bonds, notes or other obligations, lines of credit, letters of credit and other security agreements or instruments in any amounts and upon any terms as the trust may determine, and pay any fees and expenses required in connection therewith;

q. Provide to local government units any financial and credit advice, and any form of technical assistance, as these local government units may request;

r. Make payments to the State from any moneys of the trust available therefor as may be required pursuant to any agreement with the State or act appropriating moneys to the trust; and

s. Take any action necessary or convenient to the exercise of the foregoing powers or reasonably implied therefrom.

(cf: P.L.2023, c.63, s.11)

22. Section 9 of P.L.1985, c.334 (C.58:11B-9) is amended to read as follows:

9. a. (1) The trust may make and contract to make loans to local government units, or to a local government unit on behalf of another local government unit, in accordance with and subject to the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.) to finance the cost of any wastewater treatment system project or water supply project, which the local government unit may lawfully undertake or acquire and for which the local government unit is authorized by law to borrow money.

(2) The trust may make and contract to make loans to public water utilities, or to any other person or local government unit on behalf of a public water utility, in accordance with and subject to the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.) to finance the cost of any water supply project, which the public water utility may lawfully undertake or acquire.

(3) The trust may make and contract to make loans to private persons other than local government units, or to any other person or local government unit on behalf of a private person, in accordance with and subject to the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.) to finance the cost of onsite wastewater treatment and disposal systems or stormwater management systems.

(4) The trust may make and contract to make loans and provide other assistance to a local government unit or consortia thereof to finance the cost of transportation projects, aviation projects, and marine projects pursuant to sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), and provided that the federally-funded transportation subaccount is operated in accordance with the provisions of the federal infrastructure bank program.

(5) The trust may make and contract to make loans to private persons and local government units to finance the cost of workforce housing projects pursuant to section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill).

The loans may be made subject to those terms and conditions as the trust shall determine to be consistent with the purposes thereof. Except for short-term or temporary loans, each loan by the trust and the terms and conditions thereof shall be subject to approval by the State Treasurer, and the trust shall make available to the State Treasurer all information, statistical data and reports of independent consultants or experts as the State Treasurer shall deem necessary in order to evaluate the loan. Each loan to a local government unit, public water utility or any other person shall be evidenced by notes, bonds or other obligations thereof issued to the trust. In the case of each local government unit, notes and bonds to be issued to the trust and, if applicable, the State, acting by and through the Department of Environmental Protection, by the local government unit (1) shall be authorized and issued as provided by law for the issuance of notes and bonds by the local government unit, (2) notwithstanding any provisions of the "Local Authorities Fiscal Control Law," P.L.1983, c.313 (C.40A:5A-1 et seq.) to the contrary, shall be approved by the Director of the Division of Local Government Services in the Department of Community Affairs, and (3) notwithstanding the provisions of N.J.S.40A:2-27, N.J.S.40A:2-28 and N.J.S.40A:2-29 or any other provisions of law to the contrary, may be sold at private sale to the trust or the State, as the case may be, at any price, whether or not less than par value, and shall be subject to redemption prior to maturity at any times and at any prices as the trust or the State, as the case may be, and local government units may agree. Each loan to a local government unit, public water utility or any other person and the notes, bonds or other obligations thereby issued shall bear interest at a rate or rates per annum as the trust or the State, as the case may be, and the local government unit, public water utility or any other person, as the case may be, may agree.

b. The trust is authorized to guarantee or contract to guarantee the payment of all or any portion of the principal and interest on bonds, notes or other obligations issued by a local government unit, public water utility, or other person, to finance, as applicable, the cost of any wastewater treatment system project, water supply project, transportation project, aviation project, or marine project, or redevelopment project that includes, as a portion thereof, any wastewater treatment system project, water supply project, transportation project, aviation project, marine project, or hazard mitigation and resilience project as defined in section 2 of P.L.2023, c.63 (C.58:11B-20.4), which the local government unit, public water utility, or other person may lawfully undertake or acquire and for which the local government unit is authorized by law to borrow money, and the guarantee shall constitute an obligation of the trust, and shall be in furtherance of the corporate purposes of the trust, for the purposes of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4). Each guarantee by the trust and the terms and conditions thereof shall be subject to approval by the State Treasurer, and the trust shall make available to the State Treasurer all information, statistical data and reports of independent consultants or experts as the State Treasurer shall deem necessary in order to evaluate the guarantee.

c. The trust shall not make or contract to make any loans or guarantees to local government units, public water utilities or any other person, or otherwise incur any additional indebtedness, on or after June 30, 2053.

d. Notwithstanding any provision of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.) to the contrary, the trust may receive funds from any source including, without limitation, any funds drawn by the trust from a revolving line of credit or other similar financial vehicle that may be procured by the trust, either through a competitive or negotiated process, pursuant to section 5 of P.L.1985, c.334 (C.58:11B-5), for deposit into the Interim Environmental Financing Program Fund or the trust may issue its bonds, notes or other obligations, including commercial paper issued through a competitive or negotiated process, in any principal amounts, in either case, as in the judgment of the trust shall be necessary to provide sufficient funds to finance or refinance short-term or temporary loans to local government units, public water utilities or private persons for any wastewater treatment system projects included on the Department of Environmental Protection project priority list and eligible for approval pursuant to section 20 of P.L.1985, c.334 (C.58:11B-20) or water supply projects included on the Department of Environmental Protection project priority list and eligible for approval pursuant to section 24 of P.L.1997, c.224 (C.58:11B-20.1), as applicable, without regard to any other provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.), including, without limitation, any administrative or legislative approvals.

The trust shall create and establish a special fund to be known as the "Interim Environmental Financing Program Fund" for the short-term or temporary loan financing or refinancing program to be known as the "Interim Environmental Financing Program." The monies in the fund shall be used for short-term or temporary loans for clean water and drinking water projects pursuant to the New Jersey Environmental Infrastructure Financing Program.

Except as provided in section 1 of P.L.2013, c.93 (C.58:11B-9.5), any short-term or temporary loans made by the trust pursuant to this subsection may only be made in advance of the anticipated loans the trust may make and contract to make under the provisions of subsection a. of this section from any source of funds anticipated to be received by the trust. Any such short-term or temporary loan made pursuant to the Interim Environmental Financing Program shall mature no later than the last day of the fifth succeeding fiscal year following the closing date on which the short-term or temporary loan was made by the trust to the project sponsor; except a short-term or temporary loan made pursuant to this subsection for environmental planning and engineering design costs associated with long-term control plans for combined sewer overflow projects shall mature no later than the last day of the 10th succeeding fiscal year following the closing date on which the short-term or temporary loan was made by the trust to the project sponsor; and except a short-term or temporary loan made pursuant to this subsection which has been submitted as part of an application for funding pursuant to the "Water Infrastructure Finance and Innovation Act of 2014" (WIFIA), 33 U.S.C. s.3901 et seq., as amended and supplemented, shall mature not later than the funding draw period allowed by this federal act. Any short-term or temporary loan made by the trust pursuant to this subsection may mature in a shorter period of time as may be necessary to align with construction completion. With respect to any short-term or temporary loan made by the trust pursuant to this subsection, the trust may authorize one short-term supplemental loan for residual project expenses thereof upon receipt by the trust from the Department of Environmental Protection of a certification that states that the time required by the project sponsor to complete construction of the project exceeds the maximum maturity date of the project sponsor's outstanding short-term or temporary loan. Any such short-term supplemental loan shall not exceed in duration the last day of the third succeeding fiscal year following the loan closing of the supplemental loan. The trust may make short-term or temporary loans pursuant to the Interim Environmental Financing Program to any one or more of the project sponsors, for the respective projects thereof, identified in the interim financing project priority list to be known as the "Interim Environmental Financing Program Project Priority List" in the form provided to the Legislature by the Commissioner of Environmental Protection.

The Interim Environmental Financing Program Project Priority List, including any revision thereof or supplement thereto, shall be submitted to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1) at least once in each fiscal year as provided in section 20 of P.L.1985, c.334 (C.58:11B-20) and section 24 of P.L.1997, c.224 (C.58:11B-20.1). The Secretary and the Clerk shall cause the date of submission to be entered upon the Senate Journal and the Minutes of the General Assembly, respectively. The trust may revise or supplement the Interim Environmental Financing Program Project Priority List no more than four times during the fiscal year and shall submit the revised list to the Legislature when the revisions are made. Any environmental infrastructure project or the project sponsor thereof not identified in the Interim Environmental Financing Program Project Priority List shall not be eligible for a short-term or temporary loan from the Interim Environmental Financing Program Fund. The trust may issue short-term or temporary loans pursuant to this subsection only if a project is listed on an Interim Environmental Financing Program Project Priority List that has been submitted to the Legislature. No funds may be disbursed pursuant to this section for environmental infrastructure project activities prior to a determination and certification, in writing, from the Department of Environmental Protection, that the project activities satisfy the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.).

e. Notwithstanding any provisions of the "Local Bond Law" (N.J.S.40A:2-1 et seq.), the "sewerage authorities law," P.L.1946, c.138 (C.40:14A-1 et seq.), or the "municipal and county utilities authorities law," P.L.1957, c.183 (C.40:14B-1 et seq.) to the contrary, short-term or temporary loans made by the trust pursuant to section 9 of P.L.1985, c.334 (C.58:11B-9), section 1 of P.L.2013, c.93 (C.58:11B-9.5), or section 6 of P.L.2023, c.63 (C.58:11B-20.5), and the obligations issued by project sponsors to evidence such loans, may, at the discretion of the trust and upon application by the project sponsor, bear interest at a variable rate determined pursuant to a methodology as may be established by the trust from time to time.

Further, notwithstanding any provisions of the "Local Bond Law" (N.J.S.40A:2-1 et seq.), the "sewerage authorities law," P.L.1946, c.138 (C.40:14A-1 et seq.), or the "municipal and county utilities authorities law," P.L.1957, c.183 (C.40:14B-1 et seq.) to the contrary, any short-term or temporary loans made by the trust pursuant to section 9 of P.L.1985, c.334 (C.58:11B-9), section 1 of P.L.2013, c.93 (C.58:11B-9.5), or section 6 of P.L.2023, c.63 (C.58:11B-20.5), and any notes or other obligations issued by project sponsors to evidence such short-term or temporary loans, as such loans, notes, or other obligations may be refinanced or extended, as provided in subsections d. and g. of this section and section 1 of P.L.2013, c.93 (C.58:11B-9.5), except for loans for environmental planning and engineering design costs associated with long-term control plans for combined sewer overflow projects as provided in subsection d. of this section, shall mature no later than the maturity date as established pursuant to subsections d. and g. of this section and section 1 of P.L.2013, c.93 (C.58:11B-9.5), without payment by project sponsors of any portion of the principal thereof prior to maturity.

f. Any balances remaining in the Emergency Loan Fund established pursuant to section 4 of P.L.2007, c.138 (C.58:11B-9.1), the Planning and Design Fund established pursuant to section 1 of P.L.2009, c.59 (C.58:11B-9.2), the Onsite Wastewater Disposal Loan Fund established pursuant to section 5 of P.L.2009, c.103 (C.58:11B-9.3), the Supplemental Loan Fund established pursuant to section 2 of P.L.2011, c.94 (C.58:11B-9.4), and the Equipment Loan Fund established pursuant to section 1 of P.L.2014, c.28 (C.58:11B-9.6) after the date of enactment of P.L.2016, c.30 shall be transferred to the Interim Environmental Financing Program Fund, and any loan repayments to the trust of principal and interest or premium on loans made from those funds shall be credited to the Interim Environmental Financing Program Fund.

g. The trust shall create and establish a special fund to be known as the "Interim Transportation Financing Program Fund" for the short-term or temporary loan financing or refinancing program to be known as the "Interim Transportation Financing Program."

Notwithstanding any provision of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.) to the contrary, the trust may receive funds from any source including, without limitation, any funds drawn by the trust from a revolving line of credit or other similar financial vehicle that may be procured by the trust, either through a competitive or negotiated process, pursuant to section 5 of P.L.1985, c.334 (C.58:11B-5), for deposit into the Interim Transportation Financing Program Fund or the trust may issue its bonds, notes or other obligations in any principal amounts, in either case, as in the judgment of the trust shall be necessary to provide sufficient funds to finance or refinance short-term or temporary loans to local government units or private persons for any transportation project, aviation project, or marine project included on the Department of Transportation Interim Transportation Financing Program Project Priority List for the ensuing fiscal year and eligible for approval pursuant to sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), without regard to any other provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), including, without limitation, any administrative or legislative approvals.

Any short-term or temporary loans made by the trust pursuant to this subsection may only be made in advance of the anticipated loans the trust may make and contract to make under the provisions of subsection a. of this section from any source of funds anticipated to be received by the trust. Any such short-term or temporary loan made pursuant to the Interim Transportation Financing Program shall mature no later than the last day of the fifth succeeding fiscal year following the closing date on which the short-term or temporary loan was made by the trust to the project sponsor; except a short-term or temporary loan made pursuant to this subsection which has been submitted as part of an application for funding pursuant to the "Transportation Infrastructure Finance and Innovation Act of 1998" (TIFIA), 23 U.S.C. s.601 et seq., as amended and supplemented, shall mature not later than the funding draw period allowed by this federal act. Any short-term or temporary loan made by the trust pursuant to this subsection may mature in a shorter period of time as may be necessary to align with construction completion. With respect to any short-term or temporary loan made by the trust pursuant to this subsection, the trust may authorize one short-term supplemental loan for residual expenses thereof upon receipt by the trust from the Department of Transportation of a certification that states that the time required by the project sponsor to complete construction of the project exceeds the maximum maturity date of the short-term or temporary loan. Any such short-term supplemental loan shall not exceed in duration the last day of the third succeeding fiscal year following the loan closing of the short-term supplemental loan. The trust may make short-term or temporary loans pursuant to the Interim Transportation Financing Program to any one or more of the project sponsors, for the respective projects thereof, only if a project is identified in the Department of Transportation Interim Transportation Financing Program Project Priority List to be known as the "Interim Transportation Financing Program Project Priority List" in the form provided to the Legislature by the Commissioner of Transportation.

The Interim Transportation Financing Program Project Priority List, including any revision thereof or supplement thereto, shall be submitted to the Secretary of the Senate and the Clerk of the General Assembly on or before July 1 of each year. The Interim Transportation Financing Program Project Priority List shall be submitted to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1) at least once in each fiscal year. The Secretary and the Clerk shall cause the date of submission to be entered upon the Senate Journal and the Minutes of the General Assembly, respectively. Any transportation infrastructure project or the project sponsor thereof not identified in the Interim Transportation Financing Program Project Priority List shall not be eligible for a short-term or temporary loan from the Interim Transportation Financing Program Fund. The trust may revise or supplement the Interim Transportation Financing Program Project Priority List no more than four times during the fiscal year, and shall submit the revised list to the Legislature when the revisions are made.

No funds may be disbursed pursuant to this subsection for transportation project, aviation project, or marine project activities prior to certification in writing, from the trust, that the project activities satisfy the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), or sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4). Construction activities for a transportation project shall also require written notification of award concurrence from the Department of Transportation prior to fund disbursement.

(cf: P.L.2025, c.14, s.4)

23. Section 23 of P.L.1985, c.334 (C.58:11B-23) is amended to read as follows:

23. a. No funds from State sources or State bond issues used to capitalize the trust shall be available for use by the trust unless appropriated by law to the trust.

b. No funds shall be expended by the trust for its annual operating expenses unless appropriated by law to the trust. Unless required to be otherwise applied pursuant to law, funds generated by the operation of the trust, including, but not limited to: proceeds from the sale of the trust's bonds, notes or other obligations; revenues derived from investments by the trust; loan repayments from local government units, public water utilities, or other persons; and fees and charges levied by the trust, may thereafter be applied in accordance with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill) for any corporate purpose of the trust without appropriation; except that the funds shall only be used to make loans or guarantees approved by the Legislature in accordance with the provisions of sections 20, 21, and 22 of P.L.1985, c.334 (C.58:11B-20, C.58:11B-21 and C.58:11B-22), sections 24, 25, and 26 of P.L.1997, c.224 (C.58:11B-20.1, C.58:11B-21.1 and C.58:11B-22.1), [or] sections 35 through 37 of P.L.2016, c.56 (C.58:11B-10.5, C.58:11B-20.2, and C.58:11B-22.3), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. The trust shall not apply for federal funds, including funds which are authorized pursuant to the "Federal Water Pollution Control Act Amendments of 1972," Pub.L. 92-500 (33 U.S.C. s.1251 et seq.), and any amendatory or supplementary acts thereto, except the trust is expressly authorized to apply, in consultation with the Department of Environmental Protection, for funds under the "Water Infrastructure Finance and Innovation Act," (WIFIA) 33 U.S.C. s.3901 et seq. as amended or superseded, and, in consultation with the State Office of Emergency Management in the Department of Law and Public Safety for funds under the "Safeguarding Tomorrow Through Ongoing Risk Mitigation (STORM) Act," Pub.L. 116-284 (42 U.S.C. s. 5135) as amended or superseded, and with notice to the Department of Transportation, for funds under the Transportation Infrastructure Finance and Innovation Act (TIFIA) 23 U.S.C. 601 through 23 U.S.C. 609 as amended or superseded, and provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21) Pub. L. 112-141, the Fixing America's Surface Transportation Act (FAST Act) Pub. L. 114-94, the Transportation Equity Act for the 21st Century (TEA-21) Pub. L. 105-178, the Safe, Accountable, Flexible and Efficient Transportation Equity Act: a Legacy for User ("SAFETEA-LU") Pub. L. 109-59, and the Rail Safety Improvement Act of 2008 Pub. L. 110-432, or any subsequent law concerning federal surface transportation programs as applicable.

The trust, with the concurrence of the Commissioner of Environmental Protection, may receive, accept or utilize moneys received from local government units as repayments of principal and interest on loans made from the State Revolving Fund Accounts established pursuant to section 1 of P.L.1988, c.133.

Repayments of principal and interest on all federal funds for which the New Jersey Infrastructure Bank is expressly permitted to apply shall be the responsibility of the borrowers of New Jersey Infrastructure Bank loans issued utilizing those federal funds, and in no way shall it be the responsibility of the State of New Jersey or the Department of Transportation.

(cf: P.L.2023, c.63, s.20)

24. Section 25 of P.L.1985, c.334 (C.58:11B-25) is amended to read as follows:

25. The trust shall establish the rules and regulations governing the making and use of loans or guarantees, including, but not limited to, procedures for the submission of loan guarantee requests, standards for the evaluation of requests, provisions implementing priority systems for projects, reporting requirements of the recipient of any loan or guarantee concerning the progress and the expenditure of funds, and limitations, restrictions or requirements concerning the use of loan funds as the trust shall prescribe; provided that the rules and regulations shall be in compliance with the terms and provisions of P.L.1985, c.334 (C.58:11B-1 et seq.), P.L.1997, c.224 (C.58:11B-10.1 et al.), [or] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), or section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill) relating to the making of or eligibility for loans or guarantees for environmental infrastructure projects generally, [or] for any particular type or class of wastewater treatment system or water supply projects, or for workforce housing projects.

(cf: P.L.2016, c.56, s.31)

25. Section 27 of P.L.1985, c.334 (C.58:11B-27) is amended to read as follows:

27. The trust shall adopt such rules and regulations as it deems necessary to effectuate the purposes of P.L.1985, c.334 (C.58:11B-1 et seq.) or P.L.1997, c.224 (C.58:11B-10.1 et al.), including those required pursuant to sections 25 and 26 of P.L.1985, c.334 (C.58:11B-25 and C.58:11B-26), [and] sections 22 and 34 through 38 of P.L.2016, c.56 (C.58:11B-10.3 through C.58:11B-10.5, C.58:11B-20.2, C.58:11B-22.3, and C.58:11B-22.4), and section 18 of P.L. , c. (C. ) (pending before the Legislature as this bill), in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

(cf: P.L.2016, c.56, s.33)

26. Section 11 of P.L.1960 c.83 (C.40:37A-54) is amended to read as follows:

11. a. The purposes of every authority shall be (a) provision within the county or any beneficiary county of public facilities for use by the State, the county or any beneficiary county, or any municipality in any such county, or any two or more or any subdivisions, departments, agencies or instrumentalities of any of the foregoing for any of their respective governmental purposes, (b) provision within the county or any beneficiary county of public facilities for use as convention halls, or the rehabilitation, improvement or enlargement of any convention hall, including appropriate and desirable appurtenances located within the convention hall or near, adjacent to or over it within boundaries determined at the discretion of the authority, including but not limited to office facilities, commercial facilities, community service facilities, parking facilities, hotel facilities and other facilities for the accommodation and entertainment of tourists and visitors, (c) provision within the county or any beneficiary county of structures, franchises, equipment and facilities for operation of public transportation or for terminal purposes, including development and improvement of port terminal structures, facilities and equipment for public use in counties in, along or through which a navigable river flows, (d) provision within the county or any beneficiary county of structures or other facilities used or operated by the authority or any governmental unit in connection with, or relative to development and improvement of, aviation for military or civilian purposes, including research in connection therewith, and including structures or other facilities for the accommodation of passengers, (e) provision within the county or any beneficiary county of a public facility for a combination of governmental and nongovernmental uses; provided that not more than 50 percent of the usable space in any such facility shall be made available for nongovernmental use under a lease or other agreement by or with the authority, (f) acquisition of any real property within the county or any beneficiary county, with or without the improvements thereof or thereon or personal property appurtenant or incidental thereto, from the United States of America or any department, agency or instrumentality heretofore or hereafter created, designated or established by or for it, and the clearance, development or redevelopment, improvement, use or disposition of the acquired lands and premises in accordance with the provisions and for the purposes stated in the "county improvement authorities law," P.L.1960, c.183 (C.40:37A-44 et seq.), including the construction, reconstruction, demolition, rehabilitation, conversion, repair or alteration of improvements on or to said lands and premises, and structures and facilities incidental to the foregoing as may be necessary, convenient or desirable, (g) acquisition, construction, maintenance and operation of garbage and solid waste disposal systems for the purpose of collecting and disposing of garbage, solid waste or refuse matter, whether owned or operated by any person, the authority or any other governmental unit, within or without the county or any beneficiary county, (h) the improvement, furtherance and promotion of the tourist industries and recreational attractiveness of the county or any beneficiary county through the planning, acquisition, construction, improvement, maintenance and operation of facilities for the recreation and entertainment of the public, which facilities may include, without being limited to, a center for the performing and visual arts, (i) provision of loans and other financial assistance and technical assistance for the construction, reconstruction, demolition, rehabilitation, conversion, repair or alteration of buildings or facilities designed to provide decent, safe and sanitary dwelling units for persons of low and moderate income in need of housing, including the acquisition of land, equipment or other real or personal properties which the authority determines to be necessary, convenient or desirable appurtenances, all in accordance with the provisions of the "county improvement authorities law," P.L.1960, c.183 (C.40:37A-44 et seq.), as amended and supplemented, (j) planning, initiating and carrying out redevelopment projects for the elimination, and for the prevention of the development or spread of blighted, deteriorated or deteriorating areas and the disposition, for uses in accordance with the objectives of the redevelopment project, of any property or part thereof acquired in the area of such project, (k) any combination or combinations of the foregoing or following, and (l) subject to the prior approval of the Local Finance Board, the planning, design, acquisition, construction, improvement, renovation, installation, maintenance and operation of facilities or any other type of real or personal property within the county for a corporation or other person organized for any one or more of the purposes described in subsection a. of N.J.S.15A:2-1 except those facilities or any other type of real or personal property which can be financed pursuant to the provisions of P.L.1972, c.29 (C.26:2I-1 et seq.) as amended. A county improvement authority shall also have as its purpose the pooling of loans for any local governmental units within the county or any beneficiary county that are refunding bonds in order to achieve more favorable interest rates and terms for those local governmental units. A county improvement authority shall also have as its purpose the administration, on behalf of an authorized municipality or county, of a local C-PACE program as defined in section 2 of P.L.2021, c.201 (C.34:1B-375) and to issue bonds to finance a C-PACE project for a local C-PACE program or the Garden State C-PACE program pursuant to section 9 of P.L.2021, c.201 (C.34:1B-382). A county improvement authority shall also have as its purpose the ability to undertake the following projects, including, but not limited to, the ability to apply for and receive a tax credit award as a developer of such projects: a social housing project under the Social Housing Program, established pursuant to sections 2 through 12 of P.L. , c. (C. through C. ) (pending before the Legislature as this bill); and a workforce housing project under the Workforce Housing Investment Program, established pursuant to section 13 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill).

b. In a fiscal year in which a public health emergency, pursuant to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 et seq.), a state of emergency, pursuant to P.L.1942, c.251 (C.App.A:9-33 et seq.), or both has been declared by the Governor in response to COVID-19 and during the next following fiscal year, a county improvement authority shall also have as its purpose the pooling of special emergency notes issued by the county or any beneficiary county, or by any local governmental unit within the county or any beneficiary county, pursuant to N.J.S.40A:4-55 for purposes of financing a special emergency appropriation authorized for the purpose set forth in subsections l. and m. of N.J.S.40A:4-53.

(cf: P.L.2021, c.201, s.13)

27. Section 89 of P.L.2020, c.156 (C.52:18A-263) is amended to read as follows:

89. a. The Director of the Division of Taxation in the Department of the Treasury may purchase unused tax credits awarded under a program listed in paragraphs (1) through (5) or paragraphs (7) through (10) of subsection b. of this section and shall purchase unused tax credits awarded under a program listed in paragraphs (6), (13), (14), [and] (16), and (17) of subsection b. of this section, including tax credit transfer certificates issued by the director in lieu of a tax credit allowed under such programs. The director shall not pay consideration in excess of 75 percent of the credit amount to be purchased, except for a credit awarded under:

(1) the "Emerge Program Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.), which shall be subject to the provisions of paragraph (4) of subsection d. of section 77 of P.L.2020, c.156 (C.34:1B-345);

(2) the "New Jersey Aspire Program Act," sections 54 through 67of P.L.2020, c.156 (C.34:1B-322 through C.34:1B-335), as amended and supplemented, for which the director shall pay an amount equal to 85 percent of the credit amount, provided that the issuance date of the tax credit certificate or tax credit transfer certificate to the developer or the holder of such certificate occurred at least one year prior to the date of application to the director, and further provided that, if the application to the director is submitted after the sixth year of the eligibility period, the amount in excess of the reasonable and appropriate rate of return on investment that the developer is required to pay pursuant to subsection c. of section 60 of P.L.2020, c.156 (C.34:1B-328) shall increase to 50 percent;

(3) the "Cultural Arts Incentives Program Act," P.L.2023, c.197 (C.34:1B-383 et al.), for which the director shall pay an amount equal to 85 percent of the credit amount, provided that the issuance date of the tax credit certificate or tax credit transfer certificate to the developer or the holder of such certificate occurred at least one year prior to the date of application to the director;

(4) the “Garden State Film and Digital Media Jobs Act,” P.L.2018, c.56 (C.54:10A-5.39b et al.), for which the director shall pay an amount equal to 95 percent of the credit amount for any original application approved by the authority on or after January 1, 2026, provided that the issuance date of the tax credit certificate or tax credit transfer certificate to the taxpayer, which taxpayer is a New Jersey studio partner or the holder of such certificate originally issued to a New Jersey studio partner, occurred at least one year prior to the date of application to the director and provided that the director shall purchase such certificates valued at no more than a cumulative amount of $80,000,000 in State fiscal year 2026, $160,000,000 in State fiscal year 2027, $240,000,000 in State fiscal year 2028, and $200,000,000 in each State fiscal year thereafter, subject to the conditions in this paragraph. If an application to the director for the purchase of tax credits otherwise qualifies pursuant to this paragraph, but the value of tax credits for which the director receives applications exceeds the maximum cumulative amount for the State fiscal year in which the application is made, the director shall purchase the remaining tax credits in the State fiscal year next following the State fiscal year in which the application is made, provided that the director shall not purchase a cumulative amount above the maximum cumulative amount for the respective State fiscal year. No payments shall be made pursuant to this paragraph unless the following conditions are met: full funding is provided for the fiscal year to satisfy the requirement in Article VIII, Section IV, paragraph 1 of the New Jersey Constitution that the Legislature provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of children in the State between the ages of five and 18 years; full payment of the contributions required by law for the fiscal year is made to the State-administered retirement systems; and the annual appropriations act for the State fiscal year maintains a budgetary surplus; [or]

(5) sections 1 through 4 of P.L.2025, c.399 (C.34:1B-335.4 through C.34:1B-335.7), for which the director shall pay an amount equal to 85 percent of the credit amount, provided that the issuance date of the tax credit certificate or tax credit transfer certificate to the developer or the holder of such certificate occurred at least one year prior to the date of application to the director; or

(6) the “Social Housing Program,” sections 2 through 12 of P.L. , c. (C. through C. ) (pending before the Legislature as this bill), for which the director shall pay an amount equal to 85 percent of the credit amount, provided that the issuance date of the tax credit certificate or tax credit transfer certificate to the developer or the holder of such certificate occurred at least one year prior to the date of application to the director.

b. The Director of the Division of Taxation in the Department of the Treasury may or shall, subject to the provisions of subsection a. of this section, purchase tax credits awarded under the following:

(1) the "Historic Property Reinvestment Act," sections 2 through 8 of P.L.2020, c.156 (C.34:1B-270 through C.34:1B-276);

(2) the "Brownfield Redevelopment Incentive Program Act," sections 9 through 19 of P.L.2020, c.156 (C.34:1B-277 through C.34:1B-287);

(3) the "New Jersey Innovation Evergreen Act," sections 20 through 34 of P.L.2020, c.156 (C.34:1B-288 through C.34:1B-302);

(4) the "Food Desert Relief Act," sections 35 through 42 of P.L.2020, c.156 (C.34:1B-303 through C.34:1B-310);

(5) (Deleted by amendment, P.L.2025, c.127)

(6) the "New Jersey Aspire Program Act," sections 54 through 67 of P.L.2020, c.156 (C.34:1B-322 through C.34:1B-335);

(7) the "Emerge Program Act," sections 68 through 81 of P.L.2020, c.156 (C.34:1B-336 et al.);

(8) the Grow New Jersey Assistance Program established pursuant to section 3 of P.L.2011, c.149 (C.34:1B-244);

(9) section 6 of P.L.2010, c.57 (C.34:1B-209.4);

(10) the State Economic Redevelopment and Growth Grant program established pursuant to section 5 of P.L.2009, c.90 (C.52:27D-489e);

(11) (Deleted by amendment, P.L.2025, c.400)

(12) (Deleted by amendment, P.L.2025, c.400)

(13) the "Cultural Arts Incentives Program Act," P.L.2023, c.197 (C.34:1B-383 et al.);

(14) the “Garden State Film and Digital Media Jobs Act,” P.L.2018, c.56 (C.54:10A-5.39b et al.);

(15) sections 3 through 7 of P.L.2025, c.111 (C.55:14K-106 through C.55:14K-110); [and]

(16) sections 1 through 4 of P.L.2025, c.399 (C.34:1B-335.4 through C.34:1B-335.7); and

(17) the “Social Housing Program,” sections 2 through 12 of P.L. , c. (C. through C. ) (pending before the Legislature as this bill).

(cf: P.L.2025, c.400, s.6)

28. (New section) Any municipality or housing authority shall have the power to undertake the following projects, including, but not limited to, the power to apply for and receive a tax credit award as a developer of such projects:

a. a social housing project under the Social Housing Program, established pursuant to sections 2 through 12 of P.L. , c. (C. through C. ) (pending before the Legislature as this bill); and

b. a workforce housing project under the Workforce Housing Investment Program, established pursuant to section 13 of P.L. , c. (C. and C. ) (pending before the Legislature as this bill).

29. This act shall take effect immediately.

STATEMENT

This bill provides for increased support for the development of affordable housing and workforce housing through new State programs.

Specifically, the bill establishes the Social Housing Program under the New Jersey Housing and Mortgage Finance Agency (HMFA), which authorizes the award of tax credits for social housing projects. The bill also requires the New Jersey Economic Development Authority (EDA) and HMFA to prioritize applications that include the development of: affordable housing or workforce housing situated on land owned by a unit of local government; or affordable housing in excess of the minimum affordable housing requirements for the program under which the application is submitted.

The bill also establishes the Workforce Housing Investment Program (WHIP), through which a developer of a certified workforce housing project may become eligible for a loan through the New Jersey Infrastructure Bank, as well as consideration for State investment by the Division of Investment in the Department of the Treasury.

Additionally, the bill establishes a temporary task force in the Department of the Treasury, designated as the “Interagency Task Force on Public Land for Housing.”

Social Housing Program

The bill establishes the Social Housing Program in the HMFA, under which a local government redeveloper may apply for tax credits to finance the construction of a social housing project. A local government redeveloper will be eligible to receive a tax credit if the social housing project meets certain conditions. A tax credit granted for a social housing project may not exceed 80 percent of the eligible project cost, or 85 percent if constructed under a project labor agreement. Each incentive award may not exceed $225,000,000. The bill limits the cumulative value of all tax credits awarded for social housing projects to $475,000,000. Following the award of a tax credit, a local government redeveloper may transfer the tax credit if approved by the HMFA.

Under the bill, a “social housing project” is defined as a residential project that is undertaken and operated by a local government redeveloper, and which: (1) is located on land owned by the local government redeveloper within an enhanced area; (2) is financed, in part, by general obligation bonds issued by the local government redeveloper, or issued on behalf of the local government redeveloper by a county improvement authority for not less than 20 percent of the project costs; and (3) contains no less than 300 residential units. A social housing project may include, but is not limited to, a single building, multiple contiguous buildings, or multiple buildings located on contiguous parcels of land or on parcels of land no farther apart than one-quarter of a mile, which can be completed over six years. A “local government redeveloper” is defined under the bill to mean a county, county improvement authority, municipality, housing authority, or any entity designated by a county or municipality that enters or proposes to enter into an incentive award agreement for the completion and operation of a social housing project under the program. The bill also amends existing law to explicitly provide county improvement authorities and housing authorities with the ability to apply for and receive a tax credit award as a developer of a social housing project.

A local government redeveloper undertaking a social housing project would be required to permanently reserve at least 20 percent of the residential units constructed for workforce housing, and at least 20 percent of residential units constructed for occupancy by low- and moderate-income households with affordability controls, subject to the affordability controls established by the HMFA.

Additionally, the local government redeveloper would be required to dedicate certain excess rent payments received from the project for future housing purposes. Specifically, the bill provides that upon completion of the project if, during any year, the local government redeveloper receives rental payments from tenants of the project in excess of the amounts necessary to defray the operating costs of the project, together with any debt service on bonds issued to finance the project, not less than 75 percent of the excess payments would be required to be deposited into a non-lapsing fund maintained by the redeveloper and used exclusively for the production or maintenance of additional housing projects.

The bill also provides that a local government redeveloper would be required to submit a non-refundable application fee not to exceed $10,000.

The bill provides that upon completion of a social housing project, tax credits would be issued to the local government redeveloper over a specified eligibility period, which would be set at 10 years for most projects. However, the local government redeveloper may elect an eligibility period of five years for any social housing project that has a project labor agreement may elect an eligibility period not to exceed five years, or three years if the project is located in a government-restricted municipality. The bill also authorizes a local government redeveloper to sell, transfer, or pledge the right to receive any tax credits issued under the program.

Additionally, the HMFA is required to adopt any necessary rules and regulations to administer the program and publish on its Internet site any pledge, assignment, transfer, or sale approved as a result of the provisions of the bill.

The bill also requires the HMFA to elect a State college or university to prepare a report concerning the implementation of the Social Housing Program every two years. The report is required to include: a description of each social housing project that receives a tax credit under the program; a detailed analysis of the consideration of project factors; and recommendations to further incentivize development.

Workforce Housing Investment Program (WHIP)

Within one calendar year of the enactment of this bill, the HMFA is required to establish the WHIP for the purposes of facilitating the financing of certified workforce housing projects. Under the program, the HMFA, in coordination with the EDA, will issue certifications for certain projects that qualify as workforce housing projects. Each certification will be issued upon application by the developer of the project.

The bill defines a “workforce housing project” as a specific construction project or improvement undertaken by a developer, including a local government redeveloper, which project is located in the State and predominantly includes the construction or improvement of residential housing units, and may include a parking component, provided that at least 20 percent of the residential units in the project are reserved for workforce housing. The bill defines “workforce housing” as housing that is affordable, according to federal Department of Housing and Urban Development or other recognized standards, for home ownership and rental costs and that is occupied or reserved for occupancy by households with a gross household income not more than 120 percent of the median gross household income for households of the same size within the housing region in which the housing is located. The bill also amends existing law to explicitly provide county improvement authorities and housing authorities with the ability to apply for and receive a tax credit award as a developer of a workforce housing project.

The bill provides that a workforce housing project is eligible for certification if the project: (1) is located in a transit-oriented, high-pedestrian, or walkable area or is located in a former Brownfield site; (2) reserves at least 20 percent of the residential units in the project for workforce housing; (3) is constructed under a project labor agreement; (4) is affiliated with a registered apprenticeship program; (5) contains a minimum capital investment provided by the developer of the project of at least 30 percent of total project costs; and (6) adheres to monitoring standards as determined by the HMFA.

When applying for certification, the developer of a workforce housing project may submit evidence of investment from a private pension fund. Upon receipt of such evidence, the HMFA is required to provide the evidence to the Division of Investment.

Upon certification, the HMFA will notify the Division of Investment for consideration of investment in the project, including a match to any private investments for which evidence is submitted, subject to the fiduciary duties and standards for prudent investment, and the New Jersey Infrastructure Bank for determination of eligibility of the developer for a loan issued by the bank through the Human Infrastructure Bank Fund, also established by the bill.

Specifically, the bill establishes a Human Infrastructure Bank Fund within the New Jersey Infrastructure Bank. The fund will be used to provide loans to the developer of a workforce housing project, as certified by the HMFA, to finance all or part of the costs incurred for the planning, acquisition, engineering, construction, reconstruction, repair, and rehabilitation of a workforce housing project. Under the bill, all moneys placed into the Human Infrastructure Bank Fund are required to be held separate from other funds of the trust.

Interagency Task Force on Public Land for Housing

The bill also establishes the Interagency Task Force on Public Land for Housing. The task force will consist of eight members as follows: the Chief Executive Officer of the EDA; the Director of the Division of Investment in the Department of the Treasury; the Executive Director of the HMFA; the Chairperson of the New Jersey Infrastructure Bank; and four public members, one to be appointed by the Senate President, one by the Senate Minority Leader, one by the Speaker of the General Assembly, and one by the Assembly Minority Leader.

The task force is required to publish three reports following initial organization as follows: (1) within three months, a report recommending rules and regulations to increase coordination among State entities, counties, and municipalities to reduce administrative delays and improve the efficiency of the review process for WHIP applications; (2) within six months, a report recommending ways in which the State, counties, and municipalities can utilize existing financial structures and practices to invest funds, increase revenues, and develop projects under WHIP; and (3) within one calendar year, a report recommending sites of public land that are suitable for the development of projects under WHIP, beginning with those that are able to support at least 100 housing units.

Following the publication of the reports, the EDA and HMFA are required to consider and implement, to the extent feasible, the recommendations provided by the task force regarding the review process for WHIP applications.

The task force is set to expire 30 days following the submission of its final report.

Local Unit Participation as a Developer

This bill expressly provides that a county, municipality, or entity designated by a county or municipality may participate as the developer in the Social Housing Program or WHIP. The bill specifically authorizes a housing authority designated by a municipality, and a county improvement authority designated by a county, to participate as the developer of such projects.