ASSEMBLY, No. 4673

STATE OF NEW JERSEY

221st LEGISLATURE

INTRODUCED JUNE 28, 2024

Sponsored by:

Assemblyman  CRAIG J. COUGHLIN

District 19 (Middlesex)

SYNOPSIS

     Revises New Jersey Aspire Program to clarify that certain incentive awards may not be prorated.

CURRENT VERSION OF TEXT

     As introduced.

An Act concerning the proration of tax credits under the New Jersey Aspire Program and amending P.L.2023, c.98.

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

     1.    Section 14 of P.L.2023, c.98 (C.34:1B-335.1) is amended to read as follows:

     14.  a.  (1)  Except as otherwise provided in subsection b. of this section, all program applications completed after the effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.) shall be subject to the "New Jersey Aspire Program Act," sections 54 through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335), as amended as supplemented by P.L.2023, c.98 (C.34:1B-335.1 et al.), including the rules and regulations adopted pursuant to subsection b. of section 67 of P.L.2020, c.156 (C.34:1B-335).

     (2)   Except as otherwise provided in subsection b. of this section, all program applications completed on or before the effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.) shall be subject to the provisions of the "New Jersey Aspire Program Act," sections 54 through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335), as such provisions remained in effect immediately before the effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.), including the rules and regulations adopted pursuant to subsection a. of section 67 of P.L.2020, c.156 (C.34:1B-335), except that for redevelopment projects approved by the authority prior to the effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.) and redevelopment projects that are otherwise subject to the rules and regulations adopted pursuant to subsection a. of section 67 of P.L.2020, c.156 (C.34:1B-335), including pursuant to election by the applicant pursuant to subparagraph b. of this section, the authority shall not prorate the tax credit for any year of the eligibility period.

     b.    Notwithstanding any provision of P.L.2020, c.156 (C.34:1B-269 et al.) to the contrary, if a completed application for a residential project is submitted to the authority on or before the 121st calendar day next following effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.), the applicant for the residential project has received all applicable approvals pursuant to the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.) on or before the 121st calendar day next following the effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.), and the applicant submits written notice to the authority, before the authority's approval or denial of the application, electing for the application to be governed under the provisions of this subsection, then the residential units constructed for occupancy by low- and moderate-income households within the residential project shall not be subject to the affordability controls adopted by the authority, in consultation with the agency, pursuant to paragraph (2) of subsection a. of section 56 of P.L.2020, c.156 (C.34:1B-324) and subsection b. of section 67 of P.L.2020, c.156 (C.34:1B-335).  In this event, the application for the residential project shall be reviewed, approved, and administered in accordance with the provisions of the "New Jersey Aspire Program Act," sections 54 through 67 of P.L.2020, c.156 (C.34:1B-322 through 34:1B-335), as such provisions remained in effect immediately before the effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.), including the rules and regulations adopted pursuant to subsection a. of section 67 of P.L.2020, c.156 (C.34:1B-335), except that the application shall be subject to:

     (1)   the determination of a reasonable and appropriate return on investment, as defined in section 55 of P.L.2020, c.156 (C.34:1B-323), as amended by P.L.2023, c.98 (C.34:1B-335.1 et al.); [and]

     (2)   the limitation on tax credit awards set forth in subsection b. of section 61 of P.L.2020, c.156 (C.34:1B-329) and subsection g. of section 65 of P.L.2020, c.156 (C.34:1B-333), respectively, as amended by P.L.2023, c.98 (C.34:1B-335.1 et al.); and

     (3)   no proration of the tax credit award for any year of the eligibility period.

(cf:  P.L.2023, c.98, s.14)

     2.    This act shall take effect immediately and shall apply retroactively to redevelopment projects previously approved by the authority.

STATEMENT

     This bill amends the "New Jersey Aspire Program Act" to clarify that all redevelopment projects approved under the New Jersey Aspire Program (Aspire Program) would not have tax credits prorated during any year of the project's eligibility period.

     Under current law, redevelopment projects that submitted a completed project application to the authority on or prior to the effective date of P.L.2023, c.98 are subject to the rules and regulations adopted by the Chief Executive Office of the New Jersey Economic Development Authority (authority) on November 5, 2021.  Additionally, certain project applications submitted within 121 days after the effective date of P.L.2023, c.98 are subject to the rules and regulations adopted by the authority on November 5, 2021.  All other redevelopment projects are subject to the rules and regulations adopted by the authority on December 5, 2023, pursuant to P.L.2023, c.98 (C.34:1B-335.1 et al.).

     Notably, the regulations adopted by the authority on November 5, 2021 required the authority to prorate the tax credit for the first and last years of the eligibility period based on the number of full months the project was certified in the year the developer first certifies.  However, the regulations adopted by the authority on December 5, 2023 do not include this proration requirement.

     The bill provides that any project application submitted to the authority on or prior to the effective date of P.L.2023, c.98 (C.34:1B-335.1 et al.), July 6, 2023, or any project application that was approved under the rules and regulations adopted by the authority on November 4, 2021, would not be subject to the proration of the project's tax credit incentive award during any year of the project's eligibility period.