New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 47 - NEIGHBORHOOD REVITALIZATION STATE TAX CREDIT
Subchapter 4 - PROJECTS
Section 5:47-4.2 - Scope of project, activities

Universal Citation: NJ Admin Code 5:47-4.2

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Housing and economic development activities shall be as defined in 5:47-1.2, and shall include such additional activities consistent with that definition; activities shall confer benefits on individuals while also providing a benefit to the neighborhood as a geographic entity. These include activities to produce new housing (through construction or rehabilitation), preserve and/or upgrade existing housing, or render existing housing more affordable. Use of tax credit funds to assist a household currently resident in the neighborhood to obtain or afford housing outside the neighborhood would not be an eligible use. Housing activities shall be designed to minimize displacement of residents, particularly low-income residents, in the course of implementing the neighborhood housing strategy. In order to further the goal of creating economically integrated neighborhoods, and where it is required to further the neighborhood revitalization plan, assistance may be used to support a mixed income housing project, where a portion of the housing units in the specific housing project or in the neighborhood housing strategy are reserved for low-and moderate-income households and a portion are designated as market rate housing units.

(b) Other neighborhood revitalization activities shall be as defined in N.J.A.C. 5:47-1.2, but shall supplement rather than supplant the activities of the municipal and county governments, and existing health, educational and other service providers. Where a proposed activity covers actions that are customarily considered within the scope of normal municipal service delivery or the maintenance and repair of municipal infrastructure, the nonprofit organization shall demonstrate that the activity is not supplanting any action that is the municipality's responsibility.

(c) All activities shall take place within the neighborhood designated by the approved plan, except for activities that "particularly benefit residents of the neighborhood" pursuant to N.J.S.A. 52:27D-495b(1). Activities that take place outside of the neighborhood shall be clearly identified by the nonprofit organization in the project application. The Department shall have sole discretion in determining whether such an activity is eligible for funding through the tax credit program. Such activities may include:

1. Economic development activities where the nature of the economic conditions driving the activity dictates that they should take place outside the neighborhood;

2. Service delivery activities where the facility of the service provider is located outside the neighborhood, but is accessible to the neighborhood, and the funds will be used for activities that primarily benefit the residents of the neighborhood; and

3. Development of a facility, program or activity jointly with a nonprofit organization carrying out neighborhood revitalization activities in another neighborhood of the city that will benefit the residents of both neighborhoods.

(d) Tax credit funds can be applied to activities in the manner the nonprofit organization determines to be most effective, including grants, capital subsidy, recoverable grants, loans, equity investments, and use for program services and activities.

(e) The nonprofit organization shall submit a timeline for completion of each of the activities that compose the project application. Use of tax credit funds may extend beyond the year or years in which the contribution was made to the nonprofit organization, but shall not extend beyond three years from the date the project is approved by the Department. The Department may extend the timeline for a specific activity for good cause shown.

(f) The nonprofit organization shall submit a budget for the project which shall show the breakdown of how the tax credit funds are to be used, and the anticipated use of other funds for the activities in the project, or complementary activities to be carried out by the nonprofit organization and its partners in carrying out the neighborhood revitalization strategy.

(g) The budget shall clearly demonstrate that at least 60 percent of the tax credit funds to be received by the nonprofit organization shall be used for housing and economic development activities.

(h) The nonprofit organization shall demonstrate how ongoing project activities will be funded after the completion of the funding period.

(i) The total amount of tax credit funds shown in the project budget, shall not exceed $ 1,000,000.

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