New Jersey § 40a:12a-37

§ 40a:12a-37.

a. Any municipality or county may incur indebtedness, borrow, appropriate and expend

money and issue its negotiable bonds or other obligations for the purpose of aiding

any housing authority with respect to any housing project which is located within

its jurisdiction and as to which the State or federal government shall have contracted

to furnish financial assistance. b. Any municipality or county may incur indebtedness, borrow, appropriate and expend

money and issue its negotiable bonds or other obligations for the purpose of aiding

any redevelopment entity with respect to any redevelopment project which is located

within its jurisdiction. c. The bonds or other obligations of any municipality or county issued pursuant to

this section shall be authorized by ordinance adopted pursuant to the “Local Bond

Law” ( N.J.S.40A:2-1 et seq. ), except that: (1) the ordinance may be adopted notwithstanding the provisions of N.J.S.40A:2-6 and, subject to the provisions of subsection e. of this section, bonds or other obligations

may be authorized and issued notwithstanding any debt or other limit prescribed by

that law; (2) the ordinance may be adopted notwithstanding the provisions of N.J.S.40A:2-11 and no down payment will be required; (3) the bonds or other obligations shall mature

in annual installments commencing not more than two and ending not more than 40 years

from the date of issuance; and (4) the ordinance need set forth only a brief and

general description of the location and designation of the housing or redevelopment

project with respect to which the bonds or other obligations are authorized, the amount

of the appropriation made thereby, the maximum amount of bonds or other obligations

to be issued pursuant thereto, and the rate or maximum rate of interest the bonds

or obligations shall bear. The bonds or other obligations may be subject to redemption prior to maturity, with

or without premium, at such times and on such terms and conditions as may be provided

by resolution of the governing body adopted prior to their issuance, and all matters

relating to the bonds or obligations and those matters required to be stated in the

ordinance may be performed or determined by resolution or resolutions of the governing

body adopted prior to their issuance. d. Any bonds or other obligations, issued or authorized pursuant to subsection b.

of this section by a municipality or county for the purpose of providing cash to meet

cash grant-in-aid requirements of a redevelopment entity or of a municipality exercising

directly the powers conferred by this act with respect to a redevelopment project

located within that municipality, and as to which the federal government shall have

contracted to furnish financial assistance, shall be deductible from the gross debt

of the municipality or county on any debt statement filed in accordance with the “Local

Bond Law” ( N.J.S.40A:2-1 et seq. ). Any bonds or other obligations issued or authorized pursuant to subsection b. of

this section by any municipality for the purpose of providing funds to enable any

housing authority, redevelopment entity or municipality exercising directly the powers

conferred by this act to extend credit or make loans to redevelopers pursuant to section

8 of P.L.1992, c. 79 ( C.40A:12A-8 ) shall be deductible from the gross debt of the municipality for a period from the

date of adoption of the ordinance until one year after the completion of construction

or rehabilitation of the project or until the end of the fifth fiscal year commencing

subsequent to the date of adoption of the ordinance, whichever period is shorter. The municipality shall file with the Local Finance Board a certified copy of the

ordinance as introduced, and a request that the board determine by resolution on the

basis of a project report whether the project will generate revenues annually for

the municipality from rental payments, loan repayments, real property taxes, including

payments in lieu of taxes, income from the investment or proceeds of obligations authorized

by the ordinance and other sources, direct or indirect, including like revenues generated

from related projects, that the Local Finance Board finds justifiable in its discretion,

in an amount equal to or exceeding the annual debt service requirement for the obligations

for that fiscal year, or in the subsequent fiscal year if the municipality is not

required to make payments of principal of or interest on obligations issued for that

purpose in a particular fiscal year. If the board determines affirmatively, it shall endorse its approval on the certified

copy of the ordinance. If, within 60 days of the request and filing, the board determines negatively as

to the matters described above, it shall disapprove the ordinance, endorse that disapproval

on the certified copy and deliver to the municipality a statement of its reasons therefor. e. If it appears from the supplemental debt statement filed pursuant to N.J.S.40A:2-10 with respect to an ordinance adopted pursuant to this act, which relates to a housing

project, or a redevelopment project the bonds or other obligations for which are not

deductible from the gross debt pursuant to subsection d. of this section, that the

percentage of net debt as stated therein exceeds the limit prescribed by N.J.S.40A:2-6 , the ordinance shall not take effect unless there shall be endorsed upon a certified

copy thereof, as adopted, the approval of the Local Finance Board of the Division

of Local Government Services in the Department of Community Affairs. A certified copy of that ordinance shall, upon introduction, be filed with the Local

Finance Board together with such statements and information with respect thereto and

regarding the financial condition of the municipality as the board may prescribe. The board shall cause its approval to be endorsed upon the certified copy if it

shall be satisfied, and shall record upon its minutes its estimates that: (1) the

amounts to be expended by the municipality or county for such project are not unreasonable

or exorbitant; (2) issuance of the bonds or obligations will not materially impair

the credit of the municipality or county or substantially reduce its ability during

the ensuing 10 years to pay punctually the principal and interest of its debts and

supply essential public improvements and services; and, (3) taking into consideration

trends in population and in values and uses of the property and in needs for essential

public improvements, the percentage of net debt of the municipality or county, computed

as provided in the “Local Bond Law” ( N.J.S.40A:2-1 et seq. ), will at some date within 10 years be either less than the debt limit prescribed

by that law or less than the percentage appearing from the supplemental debt statement. If the Local Finance Board within 60 days after the filing of the certified copy

shall not be satisfied as to the matters described above, it shall disapprove the

ordinance, endorse that disapproval on the certified copy and deliver to the municipality

or county a statement of its reasons therefor. f. Any municipality or county may issue its negotiable notes, at public or private

sale, in anticipation of the issuance of bonds authorized by it pursuant to this section

after the ordinance has taken effect and may, from time to time, renew those notes

in accordance with the provisions of the “Local Bond Law” ( N.J.S.40:2-1 et seq. ). g. All bonds and notes issued pursuant to this section shall be direct obligations

of the municipality or county issuing them and, unless payment is otherwise made or

provided for, a tax sufficient in an amount to pay the principal and interest on such

bonds and notes shall be levied and collected by the municipality or county in the

year in which the same shall become due and payable. The bonds and notes may contain a recital that they are issued pursuant to this

act in the manner or mode of procedure prescribed by law, and those recitals shall

be conclusive evidence of their validity and of the regularity of their issuance. h. The powers conferred by this section shall be in addition to the powers conferred

by any other law, and bonds or other obligations may be issued hereunder for the purposes

herein provided, notwithstanding that other law may provide for the issuance of bonds

or obligations for like purposes. i. The Local Finance Board shall, by regulation, provide for the budgetary treatment

of moneys borrowed by a county or municipality on behalf of a redevelopment entity

or housing authority, stating those provisions of chapter 4 of Title 40A of the New

Jersey Statutes which are or are not to apply.