NJEDA Real Estate Gap Financing Program

NJEDA Real Estate Gap Financing Program is sponsored by New Jersey Economic Development Authority. Offers gap financing for real estate development projects in New Jersey that address the economic impacts of the COVID-19 pandemic.

Real Estate Gap Financing Grant Program - NJEDA The application window for this program closed on January 8, 2025 at 5:00 P. M. EST.

INFO SESSION: Real Estate Gap Financing Grant Program Info Session Join this information session to learn about the Real Estate Gap Financing Grant Program.

This New Jersey Economic Development Authority (NJEDA) program provides grant funding for real estate development projects in distressed municipalities that require gap financing and along with … The Real Estate Gap Financing Grant Program is a $10 million pilot program established to provide grants for real estate development projects located in distressed, eligible municipalities that require gap financing and that address the negative economic impacts of the COVID19 pandemic The Real Estate Gap Financing Grant Program has received $10 million in funding.

Minimum grant request $500,000. Maximum grant request $5,000,000. Consistent with other Authority programs, the Real Estate Gap Financing Grant Program is established to mitigate the negative economic impacts of the COVID-19 pandemic and will provide grant funding to support real estate new construction or substantial rehabilitation projects located within distressed municipalities.

Eligible applicants are for-profit or non-profit entities (each, an “Applicant” or “Developer Entity”). Any city, State, or county entity and any state colleges or universities are not eligible to apply for this Program funding, including any such government entity that may also have a non-profit status under federal law.

Additional Criteria and Eligible Project Locations can be found in the “ Eligibility “ tab below The $10 million Real Estate Gap Financing Grant Program is a pilot program established through the use of federal ARP SLFRF funding to provide grants for real estate development projects located in distressed, eligible municipalities that require gap financing and that address the negative economic impacts of the COVID19 pandemic.

Applicants must agree to a 5-year deed restriction ensuring no change in the proposed project use for 5 years. Substantial rehabilitation shall have the same meaning as “reconstruction” in N. J.

A. C. 5:23-6.

3 as “any project where the extent and nature of the work is such that the work area cannot be occupied while the work is in progress and where a new certificate of occupancy is required before the work area can be reoccupied. Reconstruction may include repair, renovation, alteration or any combination thereof.

Reconstruction shall not include projects comprised only of floor finish replacement, painting or wallpapering, or the replacement of equipment or furnishings. Asbestos hazard abatement and lead hazard abatement projects shall not be classified as reconstruction solely because occupancy of the work area is not permitted. ” Projects that have started construction are not eligible.

Construction, including demolition and remediation, cannot start until EDA’s approval of the application. All projects will be subject to compliance with New Jersey prevailing wage law and the Public Works Contractor Registration Act ( N. J.

S. A. 34:11-56.

48 et seq. ) which require all contractors, subcontractors, or lower tier subcontractors (including subcontractors listed in the bid proposal) who bid on or engage in the performance of any public work in New Jersey to register with the NJ Department of Labor and Workforce Development.

Applicants must be in substantial good standing with the New Jersey Department of Labor and Workforce Development, New Jersey Department of Environmental Protection, and NJEDA prior to approval.

The Program requires Applicants to provide a current tax clearance certificate at application to demonstrate the applicant is in good standing with the New Jersey Division of Taxation, unless the applicant is not required to register with the Division of Taxation. Per US Treasury deadlines and federal SLFRF requirements, all Program funds must be expended by December 31, 2026 .

Therefore, project readiness to proceed and ability to complete the project within the program timeline requirements will be a key funding consideration.

The following types of real estate projects (new construction and/or substantial rehabilitation as defined below) which are located in distressed municipalities as defined below are eligible and will be considered for Real Estate Gap Financing grants: Commercial (including office and/or supermarkets/grocery stores) Mixed-use developments (any residential portion must comply with the 20% reservation for low- and moderate-income households required by N.

J. S. A.

52:27D-329. 9(b). Non-profit/community use projects (not government owned) Cultural, Arts, Performing Arts Projects consisting solely of warehouse and/or retail spaces are ineligible for funding.

Additionally, any warehouse use included must be ancillary and in direct support of the site’s eligible primary use. Projects primarily for governmental or educational use are ineligible for funding, including buildings that would be owned, ground leased, or primarily leased (51% of square footage) by governmental or educational entities following development. Projects that have started construction are not eligible.

Construction, including demolition and remediation, cannot start until EDA’s approval of the application. Eligible applicants are for-profit or non-profit entities (each, an “Applicant” or “Developer Entity”). Applications are limited to one application per EIN.

Any city, State, or county entity and any state colleges or universities are not eligible to apply for this Program funding, including any such government entity that may also have a non-profit status under federal law.

Bayonne, Belleville, Bridgeton, Carteret, East Orange, Elizabeth, Garfield, Hackensack, Irvington, Jersey City, Kearney, Lakewood, Linden, Long Branch, Middle Township, Millville, North Bergen, Orange, Pennsauken, Perth Amboy, Plainfield, Union City, Vineland, West New York, and Winslow.

In order to provide Grants and support projects by different entities and in several different municipalities, no applicant (and/or applicant-related entity) may receive more than one grant award and only one application will be funded in any one municipality. Minimum grant funding request would be $500,000 per project. Maximum grant funding request would be $5,000,000 per project.

Program grant funding may not exceed 50% of the total of all project development costs within the approved application. Property acquisition costs/equity are not to be considered as part of total project development costs. Program grant funding can only be used for the real estate project costs specifically approved based on the application, Authority review, and funding grant agreement.

Project costs may include hard construction costs with a maximum 10% contingency, soft costs not exceeding 20% of total project costs and developer fee not exceeding 10% of total project costs or as otherwise allowed by another State agency providing funding to a project. Acquisition funding and operating costs are not eligible.

All project costs and Grant funding are subject to federal Duplication of Benefits requirements and a cost reasonableness analysis will be undertaken prior to project approval. As allowed by EDA’s recently revised fee rules, no application fee will be charged because EDA is using part of the funds for EDA’s administrative costs.

APPLICATION CHECKLIST SAMPLE APPLICATION Board memo PROGRAM SPECIFICATIONS Traditional Chinese (Cantonese Chinese) Simplified Chinese (Mandarin Chinese) WEBINAR SLIDES | WEBINAR RECORDING For more information or to ask a specific question, please send an email to realestateinfo@ njeda. gov and a team member will reach out to you.