S3880

An Act concerning the financing of certain hazard mitigation and resilience projects in Fiscal Year 2025 and amending P.L.2024, c.45.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.2024, c.45 is amended to read as follows:

1. As used in [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill):

“Bank” means the New Jersey Infrastructure Bank, established pursuant to section 4 of P.L.1985, c.334 (C.58:11B-4).

“CHAMP” means the Community Hazard Assistance Mitigation Program established pursuant to section 5 of P.L.2023, c.63 (C.58:11B-5a).

“Loan origination fee” means the fee charged by the bank to pay a portion of the costs incurred by the bank in the implementation of the Community Hazard Assistance Mitigation Program.

“Project sponsor” means a local government unit receiving a loan from the bank pursuant to [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill).

2. Section 2 of P.L.2024, c.45 is amended to read as follows:

2. a. The New Jersey Infrastructure Bank is authorized to expend the aggregate sum of [$7,198,045] $13,813,000, or such amounts as can be supported through balances in the "Community Hazard Assistance Mitigation Program Revolving Loan Fund" established pursuant to section 3 of P.L.2023, c.63 (C.58:11B-10.6), including any appropriations from the Legislature, for the purpose of making loans to, or on behalf of, local government units to finance all or a portion of the cost of construction of the projects listed in section 4 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill).

b. The bank is authorized to increase the aggregate sum specified in subsection a. of this section by acquiring additional lending capital. The bank is authorized to utilize the following sources of funds to acquire such lending capital or for any purpose of the Community Hazard Assistance Mitigation Program:

(1) the amounts of interest earned pursuant to a loan made to a project sponsor participating in CHAMP;

(2) the interest earned on amounts deposited pending their distribution to project sponsors, as provided in subsection b. of section 6 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill); and

(3) the amounts of the loan origination fee, as provided in subsection c. of section 6 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), and any other CHAMP fees.

3. Section 3 of P.L.2024, c.45 is amended to read as follows:

3. The New Jersey Infrastructure Bank is authorized to make loans to, or on behalf of, the project sponsors for the hazard mitigation and resilience projects listed in subsection a. of section 4 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), up to the individual amounts indicated and in the priority stated, except that any such amount may be reduced by the bank pursuant to subsection a. of section 6 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), or if a project fails to meet the requirements of section 5 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill). The bank is authorized to increase any such amount pursuant to subsections b. and c. of section 6 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill).

4. Section 4 of P.L.2024, c.45 is amended to read as follows:

4. a. The following CHAMP projects shall be known and may be cited as the “State Fiscal Year 2025 Community Hazard Assistance Mitigation Program Project Eligibility List”:

Applicant, Project No.	Project Description	Estimated Total Project Amount	Estimated Total Loan Amount
Jersey City, RB0906-001	McGovern Park Resilience	$5,053,524	$1,360,000
Hoboken City, RB0905-001	Southwest Park Expansion	$13,188,272	$1,800,000
Stafford Township, RB1531-001	Elevations	$2,532,436	$570,000
Bergen County Utilities Authority, RB0200-UA-001	Flood Mitigation of Joint Meeting Pump Station	$5,993,832	$1,610,000
Brick Township Municipal Utilities Authority RB1507-UA-001	Brick Reservoir Resilient Infrastructure Improvements	$3,768,155	$1,040,000
Rochelle Park Township, RB0254-001	Reconstruction of Sanitary Sewer Pump Station	$2,595,146	$2,140,000
Rochelle Park Township, RB0254-002	Elevations	$3,364,023	$360,000
Highlands Borough RB1319-001	Highlands and Monmouth Hills Flood Mitigation and Green Infrastructure	$16,205,280	$4,413,000
Marlboro Township, RB1330-001	Nolan Road Streambank Stabilization	$1,757,775	$520,000
Total Projects: [6] 9		[$31,120,985] $54,458,443	[$8,000,000] $13,813,000

b. The bank is authorized to adjust the allowable loan amount for each project authorized in this section as appropriate, provided that the total amount of loan issuance remains within available funds, and each loan is issued pursuant to the terms and conditions of the State Fiscal Year 2025 Community Hazard Assistance Mitigation Program.

5. Section 5 of P.L.2024, c.45 is amended to read as follows:

5. Any loan made by the New Jersey Infrastructure Bank pursuant to [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), shall be subject to the requirements of this section.

a. The chairperson, vice-chairperson, or secretary of the bank shall certify that the project complies with the applicable provisions of P.L.2023, c.63, P.L.1985, c.334, and any amendatory and supplementary acts thereto, and any rules and regulations adopted pursuant thereto, as applicable, and any policy statements relating to CHAMP set forth in the State Fiscal Year 2025 CHAMP Financial Plan. In making this certification, the chairperson, vice-chairperson, or secretary may conclusively rely on the project review conducted by the State Office of Emergency Management without any independent review thereof by the bank.

b. The loan shall be conditioned upon inclusion of the project on a project eligibility list approved pursuant to section 6 of P.L.2023, c.63 (C.58:11B-20.5).

c. The loan shall be repaid within a period not to exceed 30 years of project completion or the making of the loan.

d. The loan shall not exceed the allowable project cost of the project, exclusive of capitalized interest, administrative expenses associated with federal funding programs, if applicable, interest earned on project costs as provided in subsection b. of section 6 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), the amounts of the loan origination fee as provided in subsection c. of section 6 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), and increased costs as determined in accordance with the requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8) and any policy statements relating to CHAMP set forth in the State Fiscal Year 2025 CHAMP Financial Plan.

e. The loan shall bear interest, exclusive of any cost of issuance charges, late charges, or administrative fees payable to the bank pursuant to subsection o. of section 5 of P.L.1985, c.334 (C.58:11B-5) and pursuant to the provisions of the “Safeguarding Tomorrow through Ongoing Risk Mitigation Act”, Pub. L. 116-284, by the project sponsors receiving Community Hazard Assistance Mitigation Program loans in accordance with the terms and conditions set forth in the financial plan required pursuant to section 7 of P.L.2023, c.63 (C.58:11B-22.5).

f. The loan shall be subject to all other terms and conditions as the bank shall determine to be consistent with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) and any rules and regulations adopted pursuant thereto, the requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8), and any policy statements relating to CHAMP and the financial plan required by section 7 of P.L.2023, c.63 (C.58:11B-22.5). The eligibility lists and authorization for the making of loans pursuant to [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), shall expire on July 1, 2025, and any project sponsor which has not executed and delivered a loan agreement with the bank for a loan authorized in [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), shall no longer be entitled to that loan.

6. Section 6 of P.L.2024, c.45 is amended to read as follows:

6. a. The New Jersey Infrastructure Bank is authorized to reduce the individual amount of loan funds made available to, or on behalf of, project sponsors pursuant to section 4 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), based upon final building costs, as determined in accordance with the requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8) and any policy statements relating to CHAMP set forth in the State Fiscal Year 2025 CHAMP Financial Plan. The bank is authorized to use any such reduction in the loan amount made available to a project sponsor to cover that project sponsor’s increased costs due to differing site conditions or other allowable expenses, as determined in accordance with the requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8) and any policy statements relating to CHAMP to be set forth in the State Fiscal Year 2025 CHAMP Financial Plan.

b. The bank is authorized to increase each loan amount authorized in section 4 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), by the amount of capitalized interest and interest accrued pursuant to a loan made to a project sponsor pursuant to the Community Hazard Assistance Mitigation Program, issuance expenses, and administrative expenses associated with federal funding programs allocable to each loan made by the bank pursuant to [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill).

c. The bank is authorized to increase each loan amount authorized in section 4 of [this act] P.L.2024, c.45, as amended by P.L. , c. (pending before the Legislature as this bill), by a loan origination fee.

7. This act shall take effect immediately.

STATEMENT

This bill would add three new projects to the list of projects authorized for funding by the New Jersey Infrastructure Bank (NJIB) under the fiscal year 2025 Community Hazard Assistance Mitigation Program (CHAMP): one in Brick Township, one in Rochelle Park Township, and one in Highlands Borough.

The CHAMP program was established by the "Community Hazard Assistance Mitigation Program Revolving Loan Fund Act," P.L.2023, c.63 (C.58:11B-20.3 et al.), in order to implement the federal "Safeguarding Tomorrow through Ongoing Risk Mitigation Act" (STORM act), Pub. L. 116-284, in New Jersey. In July 2024, P.L.2024, c.45 was enacted into law, which authorized the NJIB to expend up to $7,198,045 to provide low-interest loans to six project sponsors for a portion of the total costs of six eligible Community Hazard Assistance Mitigation projects for fiscal year 2025. As amended by this bill, P.L.2024, c.45 would authorize the NJIB to expend up to $13,813,000 to provide loans to project sponsors for a total of nine eligible hazard mitigation and resilience projects for fiscal year 2025.