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

Current through Register Vol. 56, No. 14, July 15, 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.