AN 4 - NYU Furman Center

State Land Use Enacted Legislation

Bill #	State	Year	Party	Topic
AN 4	NJ	2021	D	Affordable housing incentives and financing, Tax Incentives

Provided by Furman

Summary

Sections 2 through 8 establish the Historic Property Reinvestment Act, which provides tax credits for 40 percent of the cost of rehabilitating historic properties in this State.

Eligible property types include properties designated as a historic place or historic resource of significance that is used for either a commercial purpose or a residential rental purpose, provided the structure contains at least four dwelling units; or an income-producing property whose rehabilitation will create increased business activity in the surrounding area.
Tax credits under this program are capped at $50 million annually for six years.
Section 4 includes prevailing wage requirements for workers employed to perform construction work in order for businesses to qualify for tax credits.

Sections 9 to 19 establish the Brownfields Redevelopment Incentive Program Act to provide tax credits for up to 40 percent of the remediation costs for redevelopment projects on brownfield sites.

Eligible redevelopment projects include those involving construction or improvement of lands, buildings, improvements, or real and personal property, or any interest therein such as lands under water, space rights and air rights.
Section 12 includes prevailing wage requirements for workers employed to perform remediation or construction work in order for developers to qualify for tax credits.

Sections 43 to 53 establish the New Jersey Community-Anchored Development Act, which provides tax credits starting from $5 million to anchor institutions to incentivize the expansion of targeted industries in the State and the continued development of certain areas of the State.

Section 49 outlines the criteria for applications to receive tax credits under this program, which includes the extent to which the community-anchored project provides for the development of workforce housing and housing for individuals with special needs.
Section 47 includes prevailing wage requirements for construction or building services work at each community-anchored project

Sections 54 to 67 establish the New Jersey Aspire Act, which provides tax credits of up to 45 percent of the total project cost to encourage redevelopment projects by covering certain project financing gap costs.
Section 57 outlines the eligibility criteria for incentives, which include new construction residential projects where the developer reserves at least 20 percent, but not more than 50 percent, of the residential units constructed for occupancy by low- and moderate-income households with affordability controls under the Fair Housing Act, and at least 5 percent of the residential units constructed as workforce housing. If the municipality in which a property is located has received relief from the above affordability requirements in the Fair Housing Act, then the developer shall reserve at least 10 percent, but not more than 50 percent, of the residential units constructed for occupancy by low- and moderate-income households with affordability controls and at least 15 percent of the residential units constructed as workforce housing.

Section 57 also outlines minimum project costs for eligibility under the program, and includes prevailing wage requirements for construction or building services work at the redevelopment project.
Section 55 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 occupied or reserved for occupancy by households with a gross household income of more than 80 percent, but less 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.
Section 60 requires developers to enter into community benefits agreements for projects whose total costs equal or exceed $10 million, unless the developer has the municipality in which a project is located certify a copy of the developer’s redevelopment agreement.
Section 65 also allows the provision of tax credits of up to 30 percent of total project costs to ten transformative projects, which may include new construction residential or mixed-use projects with 1000 or more new residential units and 20 percent set aside for low- and moderate-income households with affordability controls, and at least 5 percent set aside as workforce housing. Projects must be located in a distressed municipality, a government-restricted municipality, or an urban transit hub municipality.

Provided by lawmakers