S 4217

SENATE, No. 4217
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED MAY 11, 2026
Sponsored by:
Senator� RAJ MUKHERJI
District 32 (Hudson)
Senator� DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
Assemblywoman� MAUREEN ROWAN
District 2 (Atlantic)
Assemblywoman� MARGIE DONLON, M.D.
District 11 (Monmouth)
Assemblyman� WILLIAM B. SAMPSON, IV
District 31 (Hudson)
Co-Sponsored by:
Senator Polistina, Assemblyman Singh and Assemblywoman
Brennan
SYNOPSIS
���� Authorizes NJ Infrastructure Bank to expend certain
sums to make loans for Community Hazard Assistance Mitigation Program projects
for FY2027.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act authorizing the expenditure of funds by the New Jersey
Infrastructure Bank for the purpose of making loans to eligible project
sponsors to finance the cost of certain hazard mitigation and resilience
projects.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
���� 1.� As used in this act:
���� �Bank� means the New Jersey
Infrastructure Bank, established pursuant to section 4 of P.L.1985, c.334
(C.58:11B-4).
���� �CHAMP� means the Community
Hazard Assistance Mitigation Program established pursuant to section 5 of
P.L.2023, c.63 (C.58:11B-5a).
���� �Loan origination fee� means
the fee charged by the bank to pay a portion of the costs incurred by the bank
in the implementation of the Community Hazard Assistance Mitigation Program.
���� �Project sponsor� means a
local government unit receiving a loan from the bank pursuant to this act.
���� 2.��� a.� The New Jersey
Infrastructure Bank is authorized to expend the aggregate sum of $13,093,000,
or such amounts as can be supported through balances in the �Community Hazard
Assistance Mitigation Program Revolving Loan Fund� established pursuant to section
3 of P.L.2023, c.63 (C.58:11B-10.6), including any appropriations from the
Legislature, for the purpose of making loans to, or on behalf of, local
government units to finance all or a portion of the cost of construction of the
projects listed in section 4 of this act.
���� b.� The bank is authorized to
increase the aggregate sum specified in subsection a. of this section by
acquiring additional lending capital.� The bank is authorized to utilize the
following sources of funds to acquire such lending capital or for any purpose
of the Community Hazard Assistance Mitigation Program:
���� (1) the amounts of interest
earned pursuant to a loan made to a project sponsor participating in CHAMP;
���� (2) the interest earned on
amounts deposited pending their distribution to project sponsors, as provided
in subsection b. of section 6 of this act; and
���� (3) the amounts of the loan
origination fee, as provided in subsection c. of section 6 of this act, and any
other CHAMP fees.
���� 3.��� The New Jersey
Infrastructure Bank is authorized to make loans to, or on behalf of, the
project sponsors for the hazard mitigation and resilience projects listed in
subsection a. of section 4 of this act up to the individual amounts indicated
and in the priority stated, except that any such amount may be reduced by the
bank pursuant to subsection a. of section 6 of this act, or if a project fails
to meet the requirements of section 5 of this act.� The bank is authorized to
increase any such amount pursuant to subsections b. and c. of section 6 of this
act.
���� 4.��� a.� The following CHAMP
projects shall be known and may be cited as the �State Fiscal Year 2027
Community Hazard Assistance Mitigation Program Project Eligibility List�:
Applicant,
  Project No.
Project
  Description
Estimated
  Total Project Amount
Estimated Total
  Loan Amount
Jersey City, RB0906-001
McGovern Park
  Resilience
$5,053,524
$1,360,000
Brigantine City,
  RB0103-001
Golf Course Drive
  Living Shoreline
$2,555,000
$2,555,000
Highlands Borough,
  RB1319-001
Highlands and Monmouth
  Hills Flood Mitigation and Green Infrastructure
$16,205,280
$4,413,000
Manasquan
  Borough, RB1329-001
Save
  the Shore
$4,765,000
$4,765,000
Total
  Projects: 4
$28,578,804
$13,093,000
���� b.� The bank is authorized to
adjust the allowable loan amount for each project authorized in this section as
appropriate, provided that the total amount of loan issuance remains within
available funds, and each loan is issued pursuant to the terms and conditions
of the State Fiscal Year 2027 Community Hazard Assistance Mitigation Program.
���� 5.��� Any loan made by the New
Jersey Infrastructure Bank pursuant to this act shall be subject to the
requirements of this section.
���� a.� The chairperson,
vice-chairperson, or secretary of the bank shall certify that the project
complies with the applicable provisions of P.L.2023, c.63, P.L.1985, c.334, and
any amendatory and supplementary acts thereto, and any rules and regulations adopted
pursuant thereto, as applicable, and any policy statements relating to CHAMP
set forth in the State Fiscal Year 2027 CHAMP Financial Plan.� In making this
certification, the chairperson, vice-chairperson, or secretary may conclusively
rely on the project review conducted by the State Office of Emergency
Management without any independent review thereof by the bank.
���� b.� The loan shall be
conditioned upon inclusion of the project on a project eligibility list
approved pursuant to section 6 of P.L.2023, c.63 (C.58:11B-20.5).
���� c.� The loan shall be repaid
within a period not to exceed 30 years of project completion or the making of
the loan.
���� d.� The loan shall not exceed
the allowable project cost of the project, exclusive of issuance expenses,
administrative expenses associated with federal funding programs, if
applicable, interest accrued as provided in subsection b. of section 6 of this
act, the amounts of the loan origination fee as provided in subsection c. of
section 6 of this act, and increased costs as determined in accordance with the
requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8) and any policy
statements relating to CHAMP set forth in the State Fiscal Year 2027 CHAMP
Financial Plan.
���� e.� The loan shall bear
interest, exclusive of any cost of issuance charges, late charges, or
administrative fees payable to the bank pursuant to subsection o. of section 5
of P.L.1985, c.334 (C.58:11B-5) and pursuant to the provisions of the
�Safeguarding Tomorrow through Ongoing Risk Mitigation Act�, Pub. L. 116-284,
by the project sponsors receiving Community Hazard Assistance Mitigation
Program loans in accordance with the terms and conditions set forth in the
financial plan required pursuant to section 7 of P.L.2023, c.63
(C.58:11B-22.5).
���� f.� The loan shall be subject
to all other terms and conditions as the bank shall determine to be consistent
with the provisions of P.L.1985, c.334 (C.58:11B-1 et seq.) and any rules and
regulations adopted pursuant thereto, the requirements of section 8 of
P.L.2023, c.63 (C.58:11B-10.8), and any policy statements relating to CHAMP and
the financial plan required by section 7 of P.L.2023, c.63 (C.58:11B-22.5).�
The eligibility lists and authorization for the making of loans pursuant to
this act shall expire on July 1, 2027, and any project sponsor which has not
executed and delivered a loan agreement with the bank for a loan authorized in
this act shall no longer be entitled to that loan.
���� 6.��� a.� The New Jersey
Infrastructure Bank is authorized to reduce the individual amount of loan funds
made available to, or on behalf of, project sponsors pursuant to section 4 of
this act based upon final building costs, as determined in accordance with the
requirements of section 8 of P.L.2023, c.63 (C.58:11B-10.8) and any policy
statements relating to CHAMP set forth in the State Fiscal Year 2027 CHAMP
Financial Plan.� The bank is authorized to use any such reduction in the loan
amount made available to a project sponsor to cover that project sponsor�s
increased costs due to differing site conditions or other allowable expenses,
as determined in accordance with the requirements of section 8 of P.L.2023,
c.63 (C.58:11B-10.8) and any policy statements relating to CHAMP to be set
forth in the State Fiscal Year 2027 CHAMP Financial Plan.
���� b.� The bank is authorized to
increase each loan amount authorized in section 4 of this act by the interest
accrued pursuant to a loan made to a project sponsor pursuant to the Community
Hazard Assistance Mitigation Program, issuance expenses, and administrative
expenses associated with federal funding programs allocable to each loan made
by the bank pursuant to this act.
���� c.� The bank is authorized to
increase each loan amount authorized in section 4 of this act by a loan
origination fee.
���� 7.��� Notwithstanding any
provision of law or regulation to the contrary, including, but not limited to,
the provisions of subsection b. of section 23 of P.L.1985, c.334 (C.58:11B-23),
the bank is authorized to utilize the following funds generated by the operation
of the bank to defray the annual operating expenses of the bank:
���� a.� the proceeds from the sale
of the bank�s bonds, notes or other obligations;
���� b.� the revenues derived from
investments by the bank;
���� c.� any loan repayments paid
to the bank, including interest from local government units;
���� d.� the proceeds of any fees
and charges levied by the bank;
���� e.� any funds received from
the federal government that are permitted by the federal government to be used
for the operating expenses of the bank; and
���� f.� any funds otherwise
permitted to be used for the operating expenses of the bank.
���� 8.� This act shall take effect
immediately and shall expire on July 1, 2027.
STATEMENT
���� This bill would authorize the
New Jersey Infrastructure Bank (NJIB) to expend up to $13,093,000 to provide
low-interest loans to local government units that undertake one of four
eligible hazard mitigation and resilience projects listed in the bill.� The
loans represent the NJIB�s implementation of the Community Hazard Assistance
Mitigation Program (CHAMP) for fiscal year 2027 (FY 2027).� The CHAMP program
was established by the �Community Hazard Assistance Mitigation Program
Revolving Loan Fund Act,� P.L.2023, c.63 (C.58:11B-20.3 et al.), in order to
implement the federal �Safeguarding Tomorrow through Ongoing Risk Mitigation
Act� (STORM Act), Pub. L. 116-284, in New Jersey.
���� The bill would permit the NJIB
to use any loan repayments received to date, and the amounts for interest
accrued pursuant to a loan made to a project sponsor pursuant to the Community
Hazard Assistance Mitigation Program, in order to fund the CHAMP program for
FY2027.� The bill would also authorize the NJIB to utilize certain funds
generated by the operation of the bank, including, but not limited to, proceeds
from the sale of bonds, the revenues derived from investments, and loan
repayments, to defray the NJIB�s FY2027 operating expenses.
���� Since its creation in 2023,
the NJIB, in partnership with the State Office of Emergency Management in the Department
of Law and Public Safety, applied for federal STORM Act funds and received
approximately $7 million to finance the construction of hazard mitigation and
resilience projects with the mission of reducing the cost of financing these
projects for New Jersey counties and municipalities.