SENATE, No. 597

STATE OF NEW JERSEY

216th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION

 


 

Sponsored by:

Senator  RICHARD J. CODEY

District 27 (Essex and Morris)

 

 

 

 

SYNOPSIS

     Requires that certain motor vehicle surcharge revenues be dedicated to the Special Needs Housing Trust Fund.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act concerning funding for special needs housing and amending P.L.2004, c.70 and P.L.2005, c.163.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 6 of P.L.2004, c.70 (C.34:1B-21.28) is amended to read as follows:

     6.    a.  There is created within the authority a special nonlapsing fund, to be known as the "Motor Vehicle Surcharges Revenue Fund." The Motor Vehicle Surcharges Revenue Fund shall consist of:

     (1)   such moneys as may be appropriated to the Motor Vehicle Surcharges Revenue Fund by the Legislature and paid to the authority by the State Treasurer from Dedicated Motor Vehicle Surcharges Revenues;

     (2)   interest or other income derived from the investment of moneys in the Motor Vehicle Surcharges Revenue Fund; and

     (3)   any other moneys as may be deposited from time to time, except that such moneys shall not be appropriated from the General Fund.

     b.    In each State fiscal year during which the authority has outstanding bonds or refunding bonds which have been issued pursuant to this act, moneys in the Motor Vehicle Surcharges Revenue Fund may be used by the authority, in accordance with the provisions of any bond resolutions authorizing the issuance of bonds or refunding bonds pursuant to this act and any contract between the authority and the State Treasurer authorized and entered into pursuant to section 7 of [this act] P.L.2004, c.70 (C.34:1B-21.29), to pay debt service payable on the authority's then outstanding bonds or refunding bonds issued pursuant to this act and any amounts due in connection with any agreements entered into pursuant to subsection c. of section 4 of [this act] P.L.2004, c.70 (C.34:1B-21.26) due in such fiscal year, to replenish any reserve or other fund established for such bonds or refunding bonds issued in accordance with subsection a. of section 4 of [this act] P.L.2004, c.70 (C.34:1B-21.26), and to pay any and all other additional amounts as shall be authorized by this act and required to be paid by the authority during such fiscal year, provided however, that the payment of all such amounts to the authority by the State Treasurer shall be subject to and dependent upon appropriations being made from time to time by the Legislature of the amounts thereof for the purposes of this act.  Notwithstanding any other provision of any law, rule, regulation or order to the contrary, the authority shall be paid only such amounts as shall be required by the provisions of any contract between the authority and the State Treasurer authorized and entered into pursuant to section 7 of [this act] P.L.2004, c.70 (C.34:1B-21.29) and the incurrence of any obligation of the State under any such contract, including any payments to be made thereunder, shall be subject to and dependent upon appropriations being made from time to time by the Legislature for the purposes of [this act] P.L.2004, c.70 (C.34:1B-21.23 et al.).

     c.    In each fiscal year beginning on or after July 1, 2006 but before July 1, 2012, all amounts on deposit in the Motor Vehicle Surcharges Revenue Fund in excess of the amount necessary to pay any amounts required to be paid by the authority pursuant to any bond resolutions authorizing the issuance of bonds or refunding bonds pursuant to this act or pursuant to any contract between the authority and the State Treasurer authorized or entered into pursuant to section 7 of [this act] P.L.2004, c.70 (C.34:1B-21.29) and payable during such fiscal year shall be transferred to the General Fund.  In each fiscal year beginning on or after July 1, 2012, all amounts on deposit in the Motor Vehicle Surcharges Revenue Fund in excess of the amount necessary to pay any amounts required to be paid by the authority pursuant to any bond resolutions authorizing the issuance of bonds or refunding bonds pursuant to P.L.2004, c.70 (C.34:1B-21-23 et al.) or pursuant to any contract between the authority and the State Treasurer authorized or entered into pursuant to section 7 of P.L.2004, c.70 (C.34:1B-21.29) and payable during such fiscal year shall be transferred to the Special Needs Housing Trust Fund, provided that the first $7,500,000 of such moneys so transferred in each fiscal year shall be remitted to the "Alcohol Treatment Programs Fund" created in section 2 of P.L.2001, c.48 (C.26:2B-9.2).

(cf:  P.L.2004, c.70, s.6)

 

     2.    Section 1 of P.L.2005, c.163 (C.34:1B-21-25a) is amended to read as follows:

     1.    a.  The Legislature finds and declares that:

     (1)   The State of New Jersey has the responsibility of providing for and assuring the continued operation of safe and humane residences for individuals who require supportive housing or extended care in a community residence;

     (2)   The State of New Jersey requires additional funding to continue efforts to create permanent supportive housing and community residences as alternatives to institutionalization or homelessness for those who would benefit from these programs;

     (3)   The State of New Jersey requires immediate programs:  (i) to create additional units of permanent supportive housing and community residences through new construction or substantial rehabilitation; and (ii) to support community grants and loans to develop and ensure the long-term viability of such housing and residential opportunities for individuals with special needs with priority given to individuals with mental illness;

     (4)   Implementation of these programs will be a substantial step toward meeting the immediate and critical need of the people of New Jersey, will substantially further the public interest, and can most economically be financed through a bond issue;

     (5)   The establishment of the Special Needs Housing Trust Fund under the auspices of the New Jersey Housing and Mortgage Finance Agency, funded through the issuance of bonds by the New Jersey Economic Development Authority under the already authorized "Motor Vehicle Surcharges Securitization Act of 2004," P.L.2004, c.70 (C.34:1B-21.23 et al.), is the most desirable means to provide funding and to implement the programs.

     b.    There is established in the agency a special nonlapsing, revolving fund to be known as the Special Needs Housing Trust Fund.  The proceeds from the sale of bonds issued by the authority pursuant to the "Motor Vehicle Surcharges Securitization Act of 2004," P.L.2004, c.70 (C.34:1B-21.23 et al.), to finance special needs housing projects pursuant to P.L.2005, c.163 (C.34:1B-21.25a et al.) and deposited into the Motor Vehicle Surcharges Securitization Proceeds Fund, together with such other funds as may be authorized by law, shall be paid by the authority to the agency for deposit into the Special Needs Housing Trust Fund based upon executed agreements between the authority and the State Treasurer.  For the purpose of obtaining moneys from the authority to be deposited into the Special Needs Housing Trust Fund, the agency may enter into agreements with the authority to receive moneys from the authority for any purposes authorized by P.L.2005, c.163 (C.34:1B-21.25a et al.) and specified in the agreements between the agency and the authority.  The proceeds of this fund shall be deposited in those depositories as may be selected by the agency to the credit of the fund.

     c.    Funds deposited into the Special Needs Housing Trust Fund shall be used by the agency to make loans, grants or other investments to finance or otherwise pay the costs of special needs housing projects, upon such terms as the agency shall determine.  In making any of the foregoing loans, grants or other investments, the agency shall not be limited by any of the restrictions imposed by P.L.1983, c.530 (C.55:14K-1 et seq.) on eligible loans, funding or financial assistance for housing projects, or other financing vehicles, and shall give priority to special needs housing projects benefiting persons with mental illness.  Special needs housing projects funded from the Special Needs Housing Trust Fund shall be eligible for exemption from real property taxation pursuant to subsection b. of section 37 of P.L.1983, c.530 (C.55:14K-37).

     d.    Pending their application to the purposes provided in P.L.2005, c.163 (C.34:1B-21.25a et al.), the moneys in the Special Needs Housing Trust Fund may be invested and reinvested as are other trust funds in the custody of the agency, in the manner provided by law.  Net earnings received from the investment or deposit of moneys in the Special Needs Housing Trust Fund shall remain in such fund and be applied to the purposes set forth in P.L.2005, c.163 (C.34:1B-21.25a et al.).

     e.    The agency is authorized to promulgate the rules and regulations, policies and procedures necessary to effectuate the provisions and purposes of P.L.2005, c.163 (C.34:1B-21.25a et al.) in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

(cf:  P.L.2005, c.163, s.1)

 

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill requires that State motor vehicle surcharge revenues collected pursuant to P.L.2004, c.70 (C.34:1B-21.23 et al.) that are in excess of the amount necessary to pay the principal and interest on motor vehicle surcharges securitization bonds issued pursuant to P.L.2004, c.70 (C.34:1B-21.23 et al.) are to be deposited after June 30, 2012 into the Special Needs Housing Trust Fund.  Under current law, these excess funds are deposited in the General Fund.  The bill would also authorize the Special Needs Housing Trust Fund to accept other funds that may be authorized by law.

     The Special Needs Housing Trust Fund was established by P.L.2005, c.163 and supports the development and construction of community residences and permanent supportive housing for individuals with special needs.  This program was initially funded in 2006 by $200,000,000 from the proceeds of bonds issued by the New Jersey Economic Development Authority.  The majority of those funds have been expended on the development and construction of community residences and permanent supportive housing for individuals with special needs, and this bill would provide additional funds to continue that mission.