TRENTON – The Assembly Appropriations Committee released legislation today that would make several changes to New Jersey’s Urban Enterprise Zone program, including how money is allocated.
The bill would:
- Set the allocation of revenues to be received by municipalities under the UEZ program from a decreasing percentage amount to a stable amount of 33.3% of revenues due until July 1, 2022 when all funding to UEZ municipalities under the UEZ program would cease;
- Provide that UEZ municipalities are to annually receive that percentage of funding as a grant after application for the funds to the UEZ Authority, with 10 percent of that amount allowed for administrative purposes.
- UEZ municipalities would be required to report to the UEZ Authority on all outstanding projects and on whether the qualifying municipality requests any reallocation of outstanding balances for other approved projects;
- Provide that any outstanding balances from the UEZ assistance fund on any UEZ-approved project may be carried over from one fiscal year to another fiscal year and, if any outstanding balances are carried over for more than one year, that remaining amount shall be credited to the general fund;
- Phase out the use of UEZ monies from the fund for police and fire services;
- Clarify that future UEZ project funds be used only for capital investment and associated costs which will lead to increased economic activity and job creation;
- Permit UEZ municipalities to use up to 75 percent of the interest amount received from the repayment of any loans made to UEZ businesses for the cost of administering those loans; and
- Provide that if in any fiscal year where monies were due to be deposited in the UEZ assistance fund for use by UEZ municipalities but were are allocated to the general fund, those monies removed from the assistance fund are to be paid back to the assistance fund at the earliest possible date and be made available for approved UEZ projects.