Imposes credit rating requirement upon ability for municipality to exercise powers under "Local Redevelopment and Housing Law."
Impact
The implications of A1038 are significant for local governance in New Jersey. By restricting redevelopment functions to municipalities holding lower credit ratings, the bill aims to address financial responsibility and ensure that only municipalities deemed to be in a less favorable fiscal position can tap into state redevelopment resources. This legislation could potentially enhance the economic focus on struggling municipalities by enabling them to undertake revitalization efforts, assuming they meet the specified credit thresholds.
Summary
Assembly Bill A1038 seeks to impose a credit rating requirement on municipalities regarding their ability to exercise powers under the Local Redevelopment and Housing Law. Specifically, the legislation stipulates that only municipalities with a credit rating of A- or lower by Standard & Poor's or Fitch, or A3 or lower by Moody's will be authorized to perform various redevelopment tasks, such as determining areas in need of redevelopment, adopting redevelopment plans, and conducting necessary investigations.
Contention
However, the bill’s conditions may provoke contention among different stakeholders. Critics argue that limiting redevelopment powers based on credit ratings could unfairly restrict higher-quality municipalities from pursuing necessary development plans, potentially impeding their growth and urban renewal initiatives. Supporters, meanwhile, may view the approach as a means to ensure that state resources are directed towards municipalities that are most in need of financial support and redevelopment efforts.
Requires calculation of need for low and moderate income housing units to be based current percentage of units occupied by low and moderate income individuals or families; revises "Local Redevelopment and Housing Law" to allow for senior citizen housing and community development.
Provides for EDA oversight and control over certain local economic development, community development, and housing programs if corruption is suspected following criminal charge or conviction of local official.
Expands Brownfields Redevelopment Incentive Program to provide tax credits to developers of residential redevelopment projects undertaken on remediated brownfield sites.