On Wednesday November 10th, the New Jersey Economic Development Authority (NJEDA) officially approved regulations for the Aspire Program.

The goal of the Aspire Program, one part of the larger New Jersey Economic Recovery Act of 2020 (ERA), is to encourage the development of commercial, mixed use, and residential real estate projects in New Jersey. The focus of this program is to support redevelopment projects that, without State incentives, would not be economically feasible. Eligible projects are those in which a financing gap exists or are expected to generate returns below market rate. These projects must also generally be located in a designated “incentive area” and must result in a net positive economic benefit to the State.

The adoption of these new regulations, while anticipated, represents an important step forward for developers and other industry participants who have been eagerly awaiting further guidance from NJEDA. Among other updates, these new regulations provide information on the submission-requirements for Aspire applications (though the final version of the application form has yet to be published). In addition, the regulations provide guidance on the scope and factors under the State’s fiscal-impact analysis that is a necessary step for approval of the application. Under the ERA, NJEDA is authorized to adopt special regulations, which will become effective immediately upon filing with the Office of Administrative Law and remain effective for a period of 180 days. During this time, the permanent regulations will be subject to typical rulemaking process, including a 60-day public comment period.

To access the board memo and other supporting documents, please click here.