Recent Regulations and Resources

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Residential Economic Redevelopment and Growth (ERG) Program

Updated:
June 1, 2021

Applications Now Open

The Residential Economic Redevelopment and Growth Program (ERG) is a tax incentive that helps developers and businesses to address financing gaps in development projects. Residential ERG projects can receive tax credits of up to 30% of total eligible project costs. Projects in Atlantic City, Camden, Paterson, Passaic, and Trenton can receive tax credits of up to 40% of eligible project costs. ERG tax credits are not meant to be a substitute for conventional debt and equity financing, and applicants should generally have their primary debt financing in place before applying.

Applications for the Residential ERG program are now open. Learn more and apply at https://www.njeda.com/erg.

Among other requirements, residential ERG projects must:

  • Be located in a qualifying incentive area and have projects costs totaling at least $5 million, $10 million or $17.5 million, depending on location;
  • Not have commenced any construction at the site of a proposed redevelopment project prior to submitting an application, except if the NJEDA determines that the project would not be completed otherwise, or in the event the project is to be undertaken in phases;
  • Demonstrate that a project financing gap exists; and
  • Reserve at least 20% of units constructed for occupancy by low or moderate income households with affordability controls as required under the rules of the Council on Affordable Housing, unless the municipality in which the property is located has received substantive certification from the council and such a reservation is not required under the approved affordable housing plan, or the municipality has been given a judgment of repose or a judgment of compliance by the court, and such a reservation is not required under the approved affordable housing plan.

Read more about the program, including detailed eligibility requirements. Specific questions should be submitted to ergextension@njeda.com.

This program is led by The New Jersey Economic Development Authority (NJEDA)

Source:

NJEDA