ASSEMBLY, No. 3998

STATE OF NEW JERSEY

217th LEGISLATURE

INTRODUCED JUNE 30, 2016

 


 

Sponsored by:

Assemblyman  VINCENT MAZZEO

District 2 (Atlantic)

 

 

 

 

SYNOPSIS

     “Steven Schmincke’s Law”; facilitates sober living home construction financing.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act concerning sober living home construction financing, designated as Steven Schmincke’s Law, and supplementing P.L.1983, c.530 (C.55:14K-1 et seq.).

 

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

 

     1.  The Legislature finds and declares that:

     a.  The State of New Jersey has experienced approximately 1,300 drug-related deaths each year since 2012;

     b.  This unfortunate statistic has more than doubled the annual number of deaths resulting from motor vehicle accidents in recent years;

     c.  Many New Jersey residents who have lost a loved one to a drug-related death, such as the family of Steven Schmincke of Egg Harbor Township, believe that residency in a responsibly-managed sober living home could have prevented the tragedy; and

     d.  It is necessary and in the public interest for the Legislature to enact legislation enabling the New Jersey Housing and Mortgage Finance Agency to establish a program to finance the creation of quality sober-living facilities through the issuance of low- or zero-interest loans.

 

     2.    a.  As used in this section:

     “Agency” means the New Jersey Housing and Mortgage Finance Agency established pursuant to section 4 of P.L.1983, c.530 (C.55:14K-4).

     “Executive director” means the Executive Director of the New Jersey Housing and Mortgage Finance Agency.

     “Project cost” means the sum total of all costs incurred in the development of a sober living home, which are approved by the agency as reasonable and necessary.  Costs shall include, but are not necessarily limited to: (1) cost of land acquisition and any buildings thereon, (2) cost of site preparation, demolition, and development, (3) architect, engineer, legal, authority and other fees paid or payable in connection with the planning, execution, and financing of the project, (4) cost of necessary studies, surveys, plans, and permits, (5) insurance, interest, financing, tax and assessment costs and other operating and carrying costs during construction, (6) cost of construction, reconstruction, fixtures, and equipment related to the real property, (7) cost of land improvements, (8) necessary expenses in connection with initial occupancy of the project, (9) a reasonable profit or fee to the builder and developer, (10) an allowance established by the agency for working capital and contingency reserves, and reserves for any anticipated operating deficits during the first two years of occupancy, and (11) the cost of such other items, including tenant relocation, as the agency shall determine to be reasonable and necessary for the development of the project.

     “Sober living home” means a halfway house, or other residential aftercare facility focused on recovery from opiate addiction, alcohol addiction, or other addictive substance. 

     b.  The executive director shall establish a program to finance the project costs of sober-living facilities through the issuance of loans with interest rates as low as zero-percent.  Loans shall be issued to program applicants who demonstrate that (1) project costs are responsible, (2) once established, the sober living home will be responsibly managed, and (3) other requirements established by the executive director are satisfied.  Funding sources may include, but shall not be limited to the agency’s "Transitional Housing Revolving Loan Program," and private donations.

 

     3.  The Executive Director of the New Jersey Housing and Mortgage Finance Agency, in consultation with the Commissioner of Human Services, shall promulgate rules and regulations pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to carry out the purposes of P.L.    , c.    (C.    ) (pending before the Legislature as this bill).

 

     4.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill, designated “Steven Schmincke’s Law,” facilitates sober living home construction financing.

     The State of New Jersey has experienced approximately 1,300 drug-related deaths each year since 2012.  This unfortunate statistic has more than doubled the annual number of deaths resulting from motor vehicle accidents in recent years.  Many residents of the State who have recently lost a loved one to a drug-related death, such as the family of Steven Schmincke of Egg Harbor Township, believe that residency in a responsibly-managed sober living home could have prevented the tragedy.  This legislation would enable the New Jersey Housing and Mortgage Finance Agency to establish a program to finance the creation of quality sober-living facilities through the issuance of low- or zero-interest loans.

     Specifically, a sober living home is a halfway house, or other residential aftercare facility focused on recovery from an addiction to opiates, alcohol, or other addictive substances.  Under the program, loans would be issued to program applicants who demonstrate that (1) project costs are responsible, (2) once established, the sober living home will be responsibly managed, and (3) other requirements established by the executive director are satisfied.  Funding sources would include, but not be limited to the agency’s "Transitional Housing Revolving Loan Program."