New Jersey § 34:1b-325

§ 34:1b-325.

a. Prior to March 1, 2029 , a developer shall be eligible to receive an incentive award for a redevelopment

project only if the developer demonstrates to the authority at the time of application

that: (1) without the incentive award, the redevelopment project is not economically feasible; (2) a project financing gap exists, or the authority determines that the redevelopment

project will generate a below market rate of return; (3) the redevelopment project, except a film studio, professional stage, television

studio, recording studio, screening room, or other infrastructure used for film production,

is located in the incentive area; (4) except for demolition and site remediation activities, the developer has not commenced

any construction at the site of the redevelopment project prior to submitting an application,

unless the authority determines that the redevelopment project would not be completed

otherwise or, in the event the redevelopment project is to be undertaken in phases,

the requested incentive award is limited to only phases for which construction has

not yet commenced; (5) the redevelopment project shall comply with minimum environmental and sustainability

standards; (6) the redevelopment project shall comply with the authority's affirmative action

requirements, adopted pursuant to section 4 of P.L.1979, c. 303 ( C.34:1B-5.4 ); (7) (a) during the eligibility period, each worker employed to perform construction work at the redevelopment project shall be paid not less than the prevailing wage rate

for the worker's craft or trade, as determined by the Commissioner of Labor and Workforce

Development pursuant to P.L.1963, c. 150 ( C.34:11-56.25 et seq. ) and P.L.2005, c. 379 ( C.34:11-56.58 et seq. ) ; (b) during the eligibility period, each worker employed to perform building services

work at the redevelopment project, whether pursuant to contract by the developer or

a commercial tenant, commercial subtenant, or other commercial occupant, shall be

paid not less than the prevailing wage rate for the worker's craft or trade, as determined

by the Commissioner of Labor and Workforce Development pursuant to P.L.1963, c. 150

( C.34:11-56.25 et seq. ) and P.L.2005, c. 379 ( C.34:11-56.58 et seq. ), except that this requirement shall not apply to workers employed to perform building

services work by a commercial tenant, commercial subtenant, or other commercial occupant

that has a leasehold interest or other occupancy right in a redevelopment project,

which leasehold interest or other occupancy right encompasses less than 5,000 square

feet of space within the project. The developer shall include in all commercial leases or other commercial occupancy

agreements, and shall require that all subleases or other commercial occupancy agreements

applicable to the redevelopment project include, a provision setting forth the requirements

of this subparagraph, which provision shall be in a form acceptable to the authority.

Notwithstanding any provisions of law to the contrary, if a commercial tenant, commercial

subtenant, or other commercial occupant violates this provision due to the underpayment

of the required prevailing wage rate, then the issuance of tax credits to the developer

and any co-applicant shall be delayed until such time as documentation demonstrating

compliance has been provided to the Commissioner of Labor and Workforce Development,

subsequently reviewed and approved by the Commissioner of Labor and Workforce Development,

and verified by the authority, which reviews and verification shall be completed. If a violation is not cured, or is not capable of being cured, within one year of

receipt of notice of the violation, then the developer and any co-applicant shall

forfeit 50 percent of the tax credits otherwise authorized for the tax period in which

the notice of violation was issued. If the violation is not cured on or before the conclusion of that tax period, the

developer and any co-applicant shall forfeit up to 100 percent of the tax credits

otherwise authorized, as determined by the authority, in each subsequent tax period

until the first tax period for which documentation demonstrating compliance has been

provided to the Commissioner of Labor and Workforce Development, subsequently reviewed

and approved by the Commissioner of Labor and Workforce Development, and verified

by the authority, which reviews and verifications shall be completed. In this event, the developer and any co-applicant shall be allowed the full tax credit

amount beginning in the tax period in which documentation of compliance was reviewed

and approved by the Commissioner of Labor and Workforce Development and verified by

the authority, including each subsequent tax period in which the tax credits are otherwise

authorized; (c) in the event a redevelopment project , or any portion thereof, is undertaken by a tenant pursuant to a contract and the tenant has a leasehold of more than 55 percent of space in the building owned

or controlled by the developer, the requirement that each worker employed to perform building service work at the building be paid

not less than the prevailing wage shall apply to the entire building , except as otherwise provided in subparagraph (b) of this paragraph for commercial

tenants, commercial subtenants, or other commercial occupants with a leasehold interest

or other occupancy right encompassing less than 5,000 square feet ; (8)(a) the redevelopment project shall be completed, and the developer shall be issued

a certificate of occupancy for the redevelopment project facilities by the applicable

enforcing agency , within four years of executing the incentive award agreement, or in the case of a

redevelopment project with a project cost in excess of $50,000,000, the incentive

phase agreement corresponding to the redevelopment project; or (b) in the discretion of the authority, a redevelopment project with a project cost

in excess of $50,000,000, and that is authorized to be completed in phases, may be

allowed no more than six years from the date on which the incentive award agreement

is executed to be issued a certificate of occupancy by the applicable enforcement

agency; (9) the developer has complied with all requirements for filing tax and information

returns and for paying or remitting required State taxes and fees by submitting, as

a part of the application, a tax clearance certificate, as described in section 1

of P.L.2007, c. 101 ( C.54:50-39 ); and (10) the developer is not more than 24 months in arrears at the time of application. b. In addition to the requirements set forth in subsection a. of this section, for

a commercial project to qualify for an incentive award the developer shall demonstrate

that the developer shall contribute capital of at least 20 percent of the total project

cost, except that if a redevelopment project is located in a government-restricted

municipality, the developer shall contribute capital of at least 10 percent of the

total project cost. c. In addition to the requirements set forth in subsection a. of this section, for

a residential project or a commercial project comprised solely of a health care or health service center to qualify for an incentive award, the residential project or health care or health service center shall: (1) have a total project cost of at least $17,500,000, if the project is located in

a municipality with a population greater than 200,000 according to the latest federal

decennial census; (2) have a total project cost of at least $10,000,000 if the project is located in

a municipality with a population less than 200,000 according to the latest federal

decennial census; or (3) have a total project cost of at least $5,000,000 if the project is in a qualified

incentive tract or government-restricted municipality. d. In addition to the requirements set forth in subsections a. and c. of this section,

for a residential project consisting of newly-constructed residential units to qualify

for an incentive award, the developer shall reserve at least 20 percent of the residential

units constructed for occupancy by low- and moderate-income households with affordability

controls as adopted by the authority, in consultation with the agency, in accordance with paragraph

(2) of subsection a. of section 56 of P.L.2020, c. 156 ( C.34:1B-324 ), except that a residential project receiving a federal historic rehabilitation tax

credit pursuant to section 47 of the federal Internal Revenue Code of 1986 , 26 U.S.C. s.47 , or a tax credit pursuant to the “Historic Property Reinvestment Act,” sections 2

through 8 of P.L.2020, c. 156 ( C.34:1B-270 through C.34:1B-276 ), shall be exempt from the affordability controls related to bedroom distribution . e. Prior to the board considering an application submitted by a developer, the authority

shall confirm with the Department of Labor and Workforce Development, the Department

of Environmental Protection, and the Department of the Treasury whether the developer

is in substantial good standing with the respective department, or has entered into

an agreement with the respective department that includes a practical corrective action

plan for the developer. The developer shall certify that any contractors or subcontractors that will perform

work at the redevelopment project: (1) are registered as required by “The Public

Works Contractor Registration Act,” P.L.1999, c. 238 ( C.34:11-56.48 et seq. ); (2) have not been debarred by the Department of Labor and Workforce Development

from engaging in or bidding on Public Works Contracts in the State; and (3) possess

a tax clearance certificate issued by the Division of Taxation in the Department of

the Treasury. The authority may also contract with an independent third party to perform a background

check on the developer.