Bill Text: NJ S2916 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes Capital Project Development Loan Program to support certain large-scale redevelopment projects; appropriates $300 million.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2022-06-23 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2916 Detail]
Download: New_Jersey-2022-S2916-Introduced.html
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
SYNOPSIS
Establishes Capital Project Development Loan Program to support certain large-scale redevelopment projects; appropriates $300 million.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Capital Project Development Loan Program, supplementing P.L.1974, c.80 (C.34:1B-1 et seq.), and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authority" means the New Jersey Economic Development Authority, established by section 4 of P.L.1974, c.80 (C.34:1B-4).
"Eligible borrower" includes public institutions of higher education, State-owned hospitals, public agencies, and non-profit organizations.
"Loan program" means the "Capital Project Development Loan Program," established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Public agency" means any independent State authority, commission, instrumentality, or agency, and includes any political subdivision of the State or combination of political subdivisions, and any division, board, bureau, office, commission, or other instrumentality within or created by a political subdivision of the State or combination of political subdivisions, and any independent authority, commission, instrumentality, or agency created by a political subdivision or combination of political subdivisions.
"Revolving loan fund" means the "Capital Project Development Loan Fund," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Transformative capital project" means a large-scale redevelopment project that promotes the public benefit by supporting research and development, health care infrastructure, green infrastructure, or transformational real estate and infrastructure.
2. a. The authority shall establish and administer the "Capital Project Development Loan Program" to provide low-interest loans to eligible borrowers to support the completion of transformative capital projects.
b. To qualify for the loan program, an applicant shall demonstrate to the authority that the applicant:
(1) qualifies as an eligible borrower, except that if the applicant is a non-public entity, the applicant shall also demonstrate that the capital project would be operated under a public-private partnership agreement, as approved by the authority;
(2) intends to undertake a transformative capital project; and
(3) meets any other eligibility requirements that the authority may deem appropriate.
c. An eligible borrower that seeks assistance under the loan program shall submit an application to the authority in a form and manner prescribed by the authority. In addition to any other information that the authority may deem appropriate, the application shall require the applicant to submit information:
(1) demonstrating that the applicant meets the eligibility requirements set forth in subsection b. of this section; and
(2) outlining the anticipated use of loan proceeds.
d. (1) The authority may approve applications for the loan program on a rolling basis, subject to the availability of funds in the revolving loan fund. The authority may prioritize applications based on any considerations that the authority deems appropriate, which considerations may include, but shall not be limited to, the intent of the project, the economic feasibility of the project, and the degree to which the project advances Statewide and regional planning goals.
(2) Upon approval of an application, the authority shall provide low-interest loans to the eligible borrower. In addition to any other terms and conditions that the authority may deem appropriate, each loan issued under the loan program shall:
(a) bear interest at lower rates than are customarily made available through conventional business loans issued by private lenders;
(b) mature at such times as the authority deems appropriate, except that no loan shall mature later than 30 years after the date of issuance; and
(c) be used exclusively to defray costs incurred by the eligible borrower in the completion of the transformative capital project.
(3) If an eligible borrower fails to repay all or part of a program loan, the authority may disqualify the borrower from future program loans for such periods as the authority deems appropriate.
e. An eligible borrower that receives assistance under the loan program shall submit an annual report to the authority until such time as the full balance of the program loan has been repaid to the authority. The annual report shall be submitted in a form and manner prescribed by the authority.
3. a. The authority shall establish and maintain a non-lapsing revolving fund, known as the "Capital Project Development Loan Fund," which shall serve as the repository of all monies used to support the loan program.
b. All loans provided under section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be issued from monies held in the revolving loan fund. All monies received by the authority from the repayment of program loans shall be deposited into the revolving loan fund.
c. The authority may deposit into the revolving loan fund such additional monies as may become available for the loan program.
4. Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) or any other law to the contrary, the authority may adopt, immediately upon filing with the Office of Administrative Law and no later than the 90th day after the effective date of this act, such rules and regulations as the authority deems necessary to implement the provisions of this act, which regulations shall be effective for a period not to exceed 12 months. The regulations shall, at a minimum, set forth the requirements for application submissions, the criteria for application selections, and the permitted uses of loan proceeds. The regulations shall thereafter be amended, adopted, or readopted by the authority in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
5. There is appropriated $300 million from the General Fund to the New Jersey Economic Development Authority for deposit into the "Capital Project Development Loan Fund," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
6. This act shall take effect immediately.
STATEMENT
This bill establishes the "Capital Project Development Loan Program" (loan program) within the New Jersey Economic Development Authority (EDA) to provide low-interest loans to support the completion of transformative capital projects. The bill appropriates $300 million from the General Fund to support the loan program.
To qualify for the loan program, an applicant would be required to: (1) be a public institution of higher education, a State-owned hospital, a public agency, or a non-profit organization; (2) undertake a transformative capital project, which is defined to include large-scale redevelopment projects that support research and development, health care infrastructure, green infrastructure, or transformational real estate and infrastructure; and (3) meet any other eligibility requirements that the EDA deems appropriate. However, if the applicant is a non-public entity, the applicant would also be required to demonstrate that the project would be operated under a public-private partnership agreement, as approved by the EDA.
Under the loan program, the EDA may approve applications on a rolling basis, subject to the availability of funds. When reviewing applications, the bill permits the EDA to prioritize applications based on any considerations that the EDA deems appropriate, including the intent of the project, the economic feasibility of the project, and the degree to which the project advances Statewide and regional planning goals.
Upon approval of an application, the EDA would provide low-interest loans to each selected applicant. Under the bill, each loan may mature no later than 30 years after the date of issuance. The bill also provides that if a borrower fails to repay all or part of a program loan, the EDA may disqualify the borrower from future program loans.
The bill also requires the EDA to establish and maintain a non-lapsing revolving fund, which would be known as the "Capital Project Development Loan Fund." The revolving fund would serve as the repository of all monies used to support the loan program. Specifically, the $300 million that is appropriated from General Fund under the bill would be deposited into the revolving loan fund.
