New Jersey § 58:11b-10

§ 58:11b-10.

a. Monies in the Community Hazard Mitigation Assistance Program Revolving Loan Fund

(1) shall be used in accordance with the provisions of the STORM Act and sections

1 through 8 of P.L.2023, c. 63 ( C.58:11B-20.3 et al.) for the purpose of providing loans or other financial assistance for hazard

mitigation and resilience projects undertaken by State entities, local government

units, and nonprofit organizations, and (2) shall be supplemental to, and not intended

to take the place of, funding that otherwise would be appropriated to State agencies,

local government units, or nonprofit organizations for hazard mitigation and resilience

projects. b. The bank may provide loans or other financial assistance from the fund to local

government units and nonprofit organizations to (1) supplement, as allowable under

federal law, rule, or regulation, funding received from other federal resilience grant

programs, including the Building Resilient Infrastructures and Communities (BRIC)

program, the Flood Mitigation Assistance (FMA) program, the Hazard Mitigation Grant

Program (HMGP), and the United States Department of Housing and Urban Development's

Community Development Block Grant Mitigation program, and (2) participate in the United

States Army Corps of Engineers' Flood Risk Management Program. c. (1) The bank may provide loans or other financial assistance from the fund to local

government units for the purpose of establishing a program to provide loan funds to

private property owners to use for hazard mitigation and resilience projects for a

building. Hazard mitigation projects for private property owners shall include, but not be

limited to, wind retrofit, flood mitigation elevation, floodproofing, fire retrofit

mitigation, hurricane retrofit mitigation projects, and any other eligible projects

pursuant to the STORM Act. (2) Repayment of a loan provided by a local government unit to a private property

owner may be collected in the same manner as property taxes and shall be collateralized

by a lien on the real property that is the site of the hazard mitigation and resilience

project. A property owner may sell property after receiving a loan pursuant to this subsection,

provided that the property owner repays the loan. (3) To the extent permitted by federal law, a local government unit that provides

loans to private property owners pursuant to paragraph (1) of this subsection shall

establish a graduated loan forgiveness program that shall, at minimum: (a) provide full loan forgiveness for eligible households with income between 80 percent

and 50 percent of the median income for the municipality in which the property to

which the loan applies is located; (b) provide 50 percent loan forgiveness for eligible households with income between

80 percent to 100 percent of the median income for the municipality in which the property

to which the loan applies is located; and (c) provide additional loan forgiveness percentages for households not covered by

subparagraph (a) or (b) of this paragraph, based on: (i) the number of private property owners with loans issued pursuant to this subsection

that are outstanding; (ii) the availability of funding; and (iii) any other factor that the local government unit, in consultation with the State

Office of Emergency Management, finds reasonable and necessary. d. The bank may provide grants or other financial assistance to nonprofit organizations

for hazard mitigation and resilience projects. e. The bank shall, taking into consideration and in accordance with the requirements

of the STORM Act, establish, in consultation with the State Office of Emergency Management,

application procedures and eligibility criteria for State entities, local government

units, and nonprofit organizations to receive loans or other financial assistance

from the fund. The eligibility criteria shall require that an applicant demonstrate: (1) the need for the loan or other financial assistance to address hazard mitigation;

and (2) the ability to repay the loan or other financial assistance, if required, at a

later date. f. Long-term loans provided from the fund shall be for a fixed loan period, and shall

comply with all applicable requirements of the STORM Act and any rules, regulations,

or guidelines adopted by the Federal Emergency Management Agency governing funding

provided pursuant to the STORM Act. The bank shall establish terms for providing assistance from the fund, including

short-term loans for planning, design, and construction, below market interest rates,

deferred payment schedules, and other provisions that will enable these funds to be

used effectively.