ELIGIBILITY

Eligible applicants are municipalities defined below as meeting BOTH criteria excluding Atlantic City which received its own FY 2024 State Budget Appropriation from ARP SLFRF.

• Top 5% of municipalities based on Commuter-Adjusted Population (2018-2022 American Community Survey 5-Year Estimates)
  • This is “Daytime Population” which is the calculation of Total Resident Population + Total Workers Working in Area – Total Workers Living in Area.
• Top 5% of municipalities within the 2023 Municipal Revitalization Index (MRI). The MRI serves as the State’s official measure and ranking of municipal distress. The MRI ranks New Jersey’s municipalities according to eight separate indicators that measure diverse aspects of social, economic, physical, and fiscal conditions in each locality. The MRI is used as a factor in distributing certain “need based” funds.

The following municipalities, which all ranked within the top five percent of commuter-adjusted population and municipal distress based on the 2023 Municipal Revitalization Index, are eligible to apply for a minimum of two projects and receive funding:

• Camden
• New Brunswick
• Newark
• Passaic
• Paterson
• Trenton

Please note that only one application for funding within a municipality may be submitted. Eligible municipalities may designate a municipal entity, county entity, or a not-for-profit local economic and community development entity to be the applicant on behalf of the municipality and if so, then a letter is required as part of the application.

PROGRAM ELIGIBLE USES

The Program will allow for several types of projects as described below (“Projects”) to be funded within the Corridor as part of the municipal Revitalization Strategy. Applicants must include a minimum of two projects from the list below in their application:de a minimum of two projects from the list below in their application:

• Building Rehabilitation Projects – rehabilitation/renovation of a blighted, underutilized, partially vacant, or vacant building (could include substantial or minor rehabilitation, reactivating vacant space, addressing code violations, interior building reconfiguration/fit out) for use as a commercial or mixed-use building with a deed restriction to be required ensuring no change in the proposed project use for 5 years; Maximum funding of $3.5 million per building; not for new construction
• Building Reuse Studies – such as building conversion analysis from office to commercial or mixed-use; or adaptive reuse study; or other building analysis; Funding cannot be used for physical improvements/construction work. Maximum funding of $200,000 per study and maximum of 3 studies per applicant
• Public Space Use Investments – Funding may be provided for permanent or semi-permanent physical improvements for projects such as parklets, barrier structures, stages, active use equipment, pedestrian plazas, pocket parks; Funding cannot be used for programming/operational costs of the space; space/property must be either outdoor publicly owned space or outdoor space under agreement (operating agreement, lease, easement, etc.) with a public entity for public use that would function as one of the uses listed above; space/property must be predominantly accessible/open to the public for public use the majority of the time for a minimum 5 years; Maximum funding of $1.5 million per project

Project Timeline Considerations

• Per US Treasury deadlines and federal SLFRF requirements, all Program funds must be fully disbursed by December 31, 2026.
• In order to meet these timelines, it is anticipated that Projects included in any application for Program funding would be fully completed by September 30, 2026.

Construction Considerations

• Projects that have started construction are not eligible.
• Construction, including demolition and remediation, cannot start until approval. All projects will be subject to compliance with New Jersey prevailing wage law and the Public Works Contractor Registration Act (NJSA 34:11-56.48 et seq.) which requires all contractors, subcontractors, or lower tier subcontractors (including subcontractors listed in bid proposal) who bid on or engage in the performance of any public work in New Jersey to register with the NJ Department of Labor and Workforce Development.

Building Rehabilitation Projects Considerations

• Building Rehabilitation Projects that are 100% residential are not eligible.
• Building Rehabilitation Projects that are for governmental or educational uses are not eligible.
• Mixed-used development projects are eligible and (1) any residential portion must comply with the 20% reservation for low- and moderate-income households required by N.J.S.A. 52:27D-329(b). and (2) should have at least 20% of the total square footage or the entire ground level or entire floor of the building dedicated to a commercial/non-residential use.

Project Cost Considerations

• Program grant funding can only be used for the real estate project costs specifically approved based on the application, Authority review, and funding grant agreement.
• Project costs may include hard construction costs with a maximum 10% contingency, soft costs not exceeding 20% of total project costs and developer fee not exceeding 10% of total Project costs or as otherwise allowed by another State agency providing funding to a project.
• Acquisition funding is not eligible.
• Operating costs are not eligible.
• All Project costs and Grant funding are subject to federal Duplication of Benefits requirements and a cost reasonableness analysis will be undertaken prior to Project approval.