New JerseyA4571220th Legislature (2024-2025)HouseWALLET

Makes various changes to powers and duties of NJ Infrastructure Bank.

Sponsored By: Clinton Calabrese (Democratic), Gordon M. Johnson (Democratic), Yvonne Lopez (Democratic), Anthony S. Verrelli (Democratic), Andrew Zwicker (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 1 costs, 4 mixed.

Property protection loans with income-based forgiveness

Beginning January 30, 2025, local governments can offer property-owner loans for building elevation, floodproofing, and wind, fire, or hurricane upgrades. Repayments may be collected like property taxes and secured by a property lien; owners may sell after repaying the loan. Where federal law permits, eligible households earning 50%–80% of municipal median income receive full forgiveness. Eligible households earning 80%–100% receive 50% forgiveness. Local governments may add forgiveness tiers based on outstanding loans, available money, and reasonable factors, consulting the State Office of Emergency Management.

Disaster-hit communities gain emergency infrastructure loans

Beginning January 30, 2025, the Bank can provide emergency loans for water, wastewater, transportation, aviation, and marine repairs or risk reduction. Projects must address direct emergency damage or comparable future risks in counties named in the Governor's emergency declaration. Costs must arise within three fiscal years; projects need written agency certification and priority-list placement within three years of the declaration. Continued listing preserves later funding eligibility; loans end by the fifth succeeding fiscal year-end, with one certified supplement allowed through the third succeeding fiscal year-end after closing. The Bank must report annually on the program, loan amounts, and durations, with a January 15 legislative reporting deadline.

Transportation projects gain short-term financing support

The Bank must maintain an interim fund for transportation, aviation, and marine loans before expected long-term financing. Projects must appear on the transportation priority list, and disbursements require written Bank certification. Transportation construction also needs written Department of Transportation award approval. Loans generally end by the fifth succeeding fiscal year-end; projects submitted for federal transportation financing can run through the federal funding draw period. One supplemental loan can cover remaining costs when the department certifies construction will outlast the original loan, through the third succeeding fiscal year-end after supplemental closing.

Water projects gain short-term financing support

The Bank must maintain an interim fund for clean water and drinking water loans, generally before expected long-term financing. Projects need priority-list placement and written state environmental certification before environmental work receives funds. Loans generally end by the fifth succeeding fiscal year-end; specified combined sewer overflow planning and design loans can reach the tenth. Projects submitted for federal water infrastructure financing can run through the federal funding draw period; one certified supplemental loan can reach the third succeeding fiscal year-end after its closing. Remaining balances after the 2016 law, plus repayments, move from the Emergency, Planning and Design, Onsite Wastewater, Supplemental, and Equipment Loan Funds into this fund.

Bank borrowing caps and lending cutoff

The Bank's bond and note principal is capped at $5 billion for emergency disaster financing and $5 billion for other purposes. Refunding bonds are excluded from those calculations. Beginning June 30, 2053, the Bank cannot make or promise new loans or guarantees, incur more debt, or issue obligations. It continues managing outstanding obligations and funds after that date. Bank bonds are payable from pledged revenues, not backed by the full faith and credit of the state or its local governments.

Communities gain hazard protection financing options

Beginning January 30, 2025, the Infrastructure Bank can finance hazard protection projects for state entities, local governments, and nonprofits, including nonprofit grants. Support includes interest subsidies, credit backing, reserves, and purchase or lease financing; loans beyond short-term financing need State Treasurer approval. Assistance can supplement federal disaster and resilience programs, but cannot replace other appropriated funding. Projects must follow applicable federal requirements and hazard plans; applicants must show need and repayment ability when repayment is required. The Bank sets application rules with emergency management officials and may offer below-market rates, deferred payments, and short-term loans. Sponsors can finance any portion of the Bank's loan origination fee, reducing upfront payment but adding that fee to their debt.

Infrastructure loans expand with project limits

The Infrastructure Bank can lend for water, wastewater, stormwater, transportation, aviation, and marine projects. Government and utility borrowers must have legal project authority; private-person loans under this authority cover only onsite wastewater or stormwater systems. Marine projects must improve public ports, terminals, or related equipment; recreational and commercial boating projects are excluded. The Bank can guarantee principal and interest for eligible infrastructure financing, including redevelopment that includes listed infrastructure or hazard protection work. Loans beyond short-term or temporary financing, and every guarantee, require State Treasurer approval.

Infrastructure borrowers get repayment and rate options

Loan terms can reach 31 years for transportation, aviation, and marine projects, or 30 years for hazard protection projects. Environmental project terms generally reach 30 years, or 45 years for combined sewer overflow projects. A shorter certified project life or applicable companion-loan rule limits repayment terms; federal infrastructure programs may use their federal maximums. For specified short-term loans, sponsors can request a variable rate, subject to Bank approval and its rate-setting method. Variable rates can raise or lower borrowing costs over time.

Sponsors & Cosponsors

Cosponsors

Carol A. Murphy
Democratic • House

Roll Call Votes

All Roll Calls

Yes: 220 • No: 1

Senate vote • 12/19/2024

AMEND

Yes: 38 • No: 0

Senate vote • 12/19/2024

3RDG FINAL PASSAGE

Yes: 38 • No: 0

House vote • 12/19/2024

CONCUR IN SA

Yes: 70 • No: 0 • Other: 1

House vote • 6/28/2024