By Joshua Burd
The state Economic Development Authority is once again accepting applications for a popular gap financing program that lapsed two years ago, but has since been rebooted.
Under the relaunched Economic Redevelopment and Growth program, or ERG, the Trenton-based agency is slated to award as much as $50 million to residential projects, allowing developers to receive tax credits of up to 30 percent of total eligible project costs. Previous legislation had called for the EDA to stop accepting ERG applications in June 2019, but the program received a new allocation specifically for housing developers under the recently enacted New Jersey Economic Recovery Act.
“Thanks to the foresight of (Gov. Phil Murphy) and the Legislature in reopening the ERG program, essential housing projects throughout New Jersey that have been on hold will be able to move forward while the new programs created by the Economic Recovery Act are under development,” said Tim Sullivan, the EDA’s chief executive. “This will not only provide much-needed new housing in our state, but it will also drive economic growth by creating construction jobs and attracting more workers to New Jersey. This is always important, but it is especially crucial now as we begin recovering from the economic impacts of COVID-19.”
The new phase of the ERG program will be administered based on pre-existing ERG regulations and statutes, as amended by the Economic Recovery Act signed on Jan. 7, which added new prevailing wage and minimum wage requirements. Projects in five cities — Atlantic City, Camden, Paterson, Passaic and Trenton — are eligible for higher subsidies and can receive tax credits of up to 40 percent of eligible project costs.
For additional information and detailed eligibility requirements, including a clarifying document outlining all requirements and application review protocols for interested parties, visit https://www.njeda.com/erg/. Specific questions can be directed to ergextension@njeda.com.
EDA to accept applications for reopened residential ERG program starting June 1
