LOCAL PROPERTY ACQUISITION GRANT PROGRAM
Now accepting applications. The application window will close on Monday, May 20th at 5PM ET.
The $25 million Local Property Acquisition Grant Program is a pilot program which provides grant funding to municipalities, municipal entities, counties, county entities, and/or not-for-profit local economic and community development entities for the acquisition of property in order to facilitate and enable the property’s future redevelopment as a part of local economic development priorities.
OVERVIEW
The Local Property Acquisition Grant Program is a competitive grant program that deploys $25 million by providing funding to eligible applicants for the acquisition of a vacant site, building, facility or a collection of properties, in order to facilitate and enable future redevelopment of the property. The Program intends to address a significant barrier in undertaking and implementing local development and redevelopment projects.
The Program will support two products: (A) approximately $3 million for Acquisitions for Strategic Public Use, and (B) approximately $21 million for Acquisitions for Future Development Projects.
The parameters of each product are detailed below.
A) Acquisitions for Strategic Public Use Product
Project property acquisition(s) and the proposed subsequent Strategic Public Use project must foster or support existing, ongoing, or planned development as part of an overall plan for property improvements and increased public access in the area proximate to the Property.
Eligible Supplemental Uses for Strategic Public Use projects must be publicly accessible spaces for the community which may include pedestrian plazas, pocket-parks, community parks, community gardens, public walkway/access, public parking lots/garages, or other similar public spaces.
Ineligible types of Supplemental Uses for Strategic Public Use projects include public infrastructure projects such as for transport, energy, communication, water, wastewater, or general public works.
The minimum grant request for Acquisitions for Strategic Public Use projects is $50,000 and the maximum grant request is $1,000,000.
B) Acquisitions for Future Development Projects Product
Project property acquisition(s) and the proposed subsequent Future Development Project must support planned development/redevelopment efforts in the area proximate to the Property.
Eligible Supplemental Uses for Future Development Projects (substantial rehabilitation and/or new construction) are limited to:
- Mixed-use developments; any residential portion must comply with the 20% reservation for low- and moderate-income households required by N.J.S.A. 52:27D-329.9(b)
- Transit-Oriented Development
- Cultural, Arts, Performing Arts
- Supermarkets/grocery stores)
- Commercial (including office and/or supermarkets/grocery stores)
- Research/Laboratory
Supplemental Uses for Future Development Projects consisting solely of warehouse, solely of residential, or primarily for government/educational uses are ineligible for funding.
The minimum grant request for Acquisitions for Future Development Projects is $50,000 and the maximum grant request is $4,000,000.
ELIGIBILITY
Eligible Applicants:
Eligible applicants are municipalities, municipal entities, counties, county entities, and not-for-profit local economic and community development entities. Additional applicant requirements:
- Must be in substantial good standing with the New Jersey Department of Labor and Workforce Development and the New Jersey Department of Environmental Protection at the time of application to be eligible.
- A current tax clearance certificate must be provided prior to approval to demonstrate the applicant is in substantial good standing with the New Jersey Division of Taxation, unless the applicant is not required to register with the Division of Taxation.
Eligible Uses of Funding:
Funding can only be used for the real estate acquisition and related closing costs of the Project specifically approved based on the application, Authority review, and funding grant agreement. Grants will be used for prospective real estate acquisition costs plus closing costs typically included as part of a closing settlement statement and related transaction legal costs.
- Funding cannot be used for due diligence-related costs.
- Properties already purchased/acquired are not eligible for reimbursement through this Program.
- Purchase of government-owned property is not eligible.
AWARD SIZE
- Minimum grant funding of $50,000 per Project.
- The maximum grant funding for acquisitions for Strategic Public Use projects is $1,000,000. The maximum grant funding for acquisitions for Future Development Projects is $4,000,000.
- Grant funding may not exceed 80% of the property appraised value plus closing costs typically included as part of a settlement statement and related transaction legal costs, except for projects located within either a Transitional Aid Community or a Government Restricted Municipality where Grant funding may account for 100% of the property appraised value plus closing costs typically included as part of a settlement statement and related transaction legal costs.
- No applicant may receive more than two grant awards.
FEES
The standard $1,000 non-refundable application fee established in the Authority’s fee rules will be charged for the Program except as noted below.
NJEDA has approved a fee waiver for municipal/municipal entity applicants of municipalities located in municipalities with 2020 Municipal Revitalization Index (MRI) scores in the top 10% of all municipalities statewide.
PROGRAM GUIDE
APPLY HERE Board Memo Program Specifications APPLICATION CHECKLIST FREQUENTLY ASKED QUESTIONS Sample ApplicationFor more information or to ask a specific question please send an email to realestateinfo@njeda.gov and a team member will reach out to you.