NJEDA Aspire Program To Support Real Estate Development Projects
Aspire is a gap financing tool to support commercial, mixed use, and residential real estate development projects that replaces the Economic Redevelopment and Growth Grant (ERG).
- To be eligible for Aspire support, a project must:
- Demonstrate through NJEDA analysis that without the incentive award, the redevelopment project is not economically feasible.
- Demonstrate that a project financing gap exists and/or the redevelopment project will generate a below market rate of return.
- Be located in a designated “Incentive Area.”
- Include developer who has an equity participation of at least 20 percent of the total cost.
- Result in a net positive benefit to the State.
- Meet specific cost thresholds, depending on where the project is located.
Most Aspire projects will be subject to a total award cap of $42 million, but residential projects also receiving LIHTC or projects located in certain economically disadvantaged locations may receive up to $60 million
Baseline tax credits available
Tax credits equal to 45 percent of project costs up to $42 million
Commercial projects in a GRM can receive tax credits up to 50 percent of project costs in project support.
Newly constructed residential projects that are also utilizing four percent LIHTCs can receive tax credits up to 60 percent of project costs
Projects using LIHTC or any other project in a Qualified Incentive Tract (QIT), GRM, or municipality with an Municipal Revitalization Index (MRI) distress score of at least 50, can receive tax credits up to $60 million
NJEDA is currently accepting applications for the Aspire program.
Consultation with Aspire program staff prior to beginning work on an application is advised because completing the application will require focused time and attention on the applicant’s part; because Aspire program eligibility rules are nuanced; and because application fees are non-refundable.
If you are interested in applying for the Aspire Program, please contact an Aspire Program team member at Aspire@njeda.com
Information Courtesy of the NJEDA.