State Resources for Redevelopment

How New Jersey is revitalizing its communities

May 18, 2006

Eileen SwanExecutive Director

Office of Smart Growth

Smart Growth Context

Invest in areas with existing infrastructureLess development pressure on open spaceFlexible planning tool to overcome challenges

How is New Jersey coordinating smart growth and redevelopment efforts?

Executive Order #4 : State agencies work together to implement smart growth policies of the State Plan

State Plan Goal #1: Revitalize State’s Cities & Towns

Legal Background

Local Redevelopment & Housing LawIntroduced in 1992 to consolidate existing redevelopment laws

Amended in 2003 to provide DCA authority so that redevelopment and rehabilitation areas are in areas where development and redevelopment is encouraged

Overview of Resources

NJ has a host of programs that support redevelopment directly through financing, grants, etc.

There are numerous programs that are related to smart growth areas and indirectly support redevelopment.

Smart Future Planning GrantsDuring Fiscal Year 2006, OSG has provided $2.295 million to municipalities, counties and non-profit agencies to help plan for the future.

Many of the seven key application categories involve redevelopment, such as:

Design guidelines for creating placesDowntown and Main Street revitalizationGreen buildingParkingTransfer of Development RightsCharrettesGreyfield redevelopment

Smart Future Grant ExamplesWhite Horse Pike Revitalization

Black Horse Pike Area Revitalization Plan

Glassboro and Rowan Cooperative Downtown Redevelopment Plan

Brownfields

Brownfields Redevelopment Interagency team (BRIT) is a resource group of 20+ state agencies that provides financial and technical support.

Brownfields Redeveloment Task Force (BRTF) helps direct the state’s agenda for brownfieldsremediation and reuse.

GreyfieldsGreyfields Task Force - strategy to encourage local officials and private sector to concentrate redevelopment activities on greyfield locations.

In 2005, OSG launched a GreyfieldDevelopment Pilot Program:

SomerdalePennsaukenCarteret Hamilton (Mercer)

NJ Redevelopment Authority NJRA is committed to the redevelopment of urban New Jersey, specifically the Urban Aid Municipalities.

Customizes project financing for redevelopment projects.

Offers financing for predevelopment: site acquisition and site preparation.

Offers project financing: Debt/Equity Loans & GuaranteesCredit EnhancementsBridge FinancingBonds

Economic Development Authority Business Employment Incentive Program (BEIP) – links jobs to housing in urban areas

Smart Growth Predeveloment Funding: low interest loans for non-contaminated site preparation as part of local development plan

Brownfields Redevelopment Loan Program: below market interest rates for brownfields site remediation

Technical assistance to implement financing as related to LRHL – e.g. Redevelopment Area Bond Financing, Revenue Allocation District Financing

Transit VillageProvides technical and grant assistance to promote dense mixed-use development around transit stations.

Municipalities designated as Transit Villages have demonstrated a commitment to revitalizing and redeveloping the area around the transit facility into compact mixed-use neighborhood.

Main Street New Jersey Provides ongoing technical

assistance to:Designated MSNJ municipalitiesdowntown revitalization organizationeconomic development corporationsUrban Enterprise ZonesSpecial Improvement Districts

Board of Public Utilities

Main Extension Rules: More cost-effective for developers to provide utility infrastructure in smart growth areas.

Smart Start Buildings Program: offset purchase costs of qualifying energy-efficient equipment

Warm Advantage and Cool Advantage: provides rebates towards the purchase of qualifying high-efficiency natural gas equipment, air conditioners and heat pumps.

Housing and Mortgage Finance Agency Smart Start Closing Cost and Down Payment Program: soft loans for up to 4% of the purchase price to homebuyers choosing to live in smart growth areas.

At Home Downtown Program: reduced-rate loans for storefront properties with housing component.

Market Oriented Neighborhood Investment (MONI): construction & permanent financing and homeownership incentives to encourage mixed-use development.

Neighborhood Preservation Program

Financial and technical assistance to municipalities over 3-5 year period to revitalize threatened but viable neighborhoods.Targets resources for:

HousingInfrastructureSocial and economic development

How does all this fit together?

Coordinated support: Smart Growth Project Review Team

Brownfields Redevelopment Interagency Team

ContactsOffice of Smart Growth: www.nj.gov/dca/osg

NJ DCA Division of Community Resources: www.nj.gov/dca/dcr

NJ Redevelopment Authority: www.njra.us

Housing & Mortgage Finance Agency: www.nj.gov/dca/hmfa

Main Street New Jersey: www.nj.gov/dca/dcr/msnj/index.shtml

Board of Public Utilities: www.bpu.state.nj.us

NJ Economic Development Authority: www.njeda.com

NJ Department of Transportation: www.state.nj.us/transportation