A maximum of $10 million per project of grants and/or loans will be offered to the four types of projects as described above. Projects that can support debt service will be considered for eligibility first and funding under the Stronger NJ Loan Program. Projects exhausting the Stronger NJ Loan Program resources and/or which do not fit the Loan Program parameters will be considered for loan funding under the NCR program.
- Up to $5 million for Recreation, Cultural and Park Land Amenities, for any eligible uses associated with such projects.
- Up to $5 million for environmental investigation and remediation and associated predevelopment costs for Catalytic Projects, Innovation Projects, and Transformative Neighborhood Projects.
- Up to $10 million for demolition and clearance, and associated pre-development costs to state redevelopment agencies undertaking projects themselves (as opposed to providing funding to projects undertaken by other parties), including those formed to manage the redevelopment of a former military base closed by a Defense Base Closure and Realignment Commission action. These may be structured as equity investments or joint ventures.
Loans and Forgivable Loans
- Up to a maximum of $10 million for projects with projected income streams able to support debt service, with 25% of the loan forgiven upon project completion and issuance of a permanent Certificate of Occupancy. If eligible for the Stronger NJ Loan Program, the Loan Program resources must be exhausted before NCR loan funding can be utilized. The overall maximum of $10 million per project, including the Stronger NJ Loan, applies.
- Typical uses for the up to $10 million of loan funding are anticipated to include construction and/or rehabilitation of: buildings intended for mixed, commercial and/or industrial uses; parking facilities; and mitigation measures for these uses.
- Up to $5 million for infrastructure that is owned or upon completion will be owned by a municipality or public authority. Loans for these purposes will be forgiven 100% upon transfer of ownership to the municipality or public authority; or if already owned by a municipality or public authority, then upon completion of the infrastructure portion of the project. If flood insurance on the infrastructure is required because of the location of the improvements in a Special Flood Hazard Area, then flood insurance will be required for the life of the asset.
- Terms – Both construction and/or permanent financing are available according to the terms of the Stronger NJ Business Loans currently available, with the exception that loans need not close within 60 days of approval.
- Interest rate: 0% interest for first 24 months, rate reset at 5 year US Treasury after the initial interest free period, fixed at closing for terms up to 10 years. For terms of greater than 10 years, rates will be reset every 10 years; Default rate will be the rate in effect at the time of default plus 500 basis points.
- Term: Up to a 30 year term based on the purpose of the loan and the useful life of any assets to be financed
- 2 year principal moratorium for construction loans, or until Temporary Certificate of Occupancy is issued, as applicable.
In addition, projects will need to be capable of utilizing the awarded funding under this program by year end 2015. Funding will also be prioritized for projects located in a low or moderate income community (defined by HUD based on census tract). Only applications located in these areas will be considered for funding for the first 6 weeks following the launch of the NCR program. Should the Authority be in the position of considering more than one project that meets the program requirements and insufficient funding to assist all, NJEDA will consider primarily the community in which the project is located with the greater impact from the Superstorm as the basis for determining which project to fund. Secondarily, NJEDA will consider the economic impact of the project.