New Jersey Assembly Bill A4371

New Jersey 2022-2023 Regular Session

• Introduced: 6/20/22
• Refer: 6/20/22
• Report Pass: 6/23/22

Caption

Establishes Capital Project Development Loan Program to support certain large-scale redevelopment projects; appropriates $300 million.

Impact

By creating a source of financial assistance for transformative capital projects, A4371 seeks to foster economic development within New Jersey. The program will facilitate the execution of significant projects that can contribute to community reinvestment and improvement of state infrastructure. Further, the bill allows the New Jersey Economic Development Authority (EDA) to prioritize loan applications based on project feasibility and alignment with regional planning goals, thereby supporting strategic development initiatives across the state.

Summary

A4371 establishes the Capital Project Development Loan Program aimed at providing low-interest loans to eligible borrowers for the purpose of completing transformative capital projects. The bill appropriates $300 million from the New Jersey General Fund to support this loan program. Eligible borrowers include public institutions of higher education, State-owned hospitals, public agencies, and non-profit organizations that undertake large-scale redevelopment projects beneficial to the public. These projects may involve areas such as research and development, health care infrastructure, and green infrastructure.

Contention

Notable points of contention associated with A4371 revolve around the eligibility criteria and the prioritization process within the loan program. Some stakeholders may raise concerns regarding potential biases in deciding which applications receive preference, specifically related to public versus private project undertakings. There may also be discussions about the accountability of the funds allocated and the reporting requirements imposed on borrowers, especially those that are non-public entities which must demonstrate a public-private partnership. The authority's ability to adopt regulations rapidly without extensive public review might also be contentious.