ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 1443

 

STATE OF NEW JERSEY

 

 

ADOPTED MAY 2, 1996

 

 

Sponsored by Assemblymen DORIA and KELLY

 

 

An Act authorizing the creation of a debt of the State of New Jersey by the issuance of bonds of the State in an aggregate principal amount of $290,000,000 for the purpose of providing grants, loans and other forms of subsidies to foster the development of small businesses in urban and low income areas; for the construction and rehabilitation of safe and decent housing for low and moderate income households; to foster home ownership among that population; providing the ways and means to pay and discharge the principal and interest on the bonds; providing for the submission of this act to the people at a general election; and making an appropriation therefor.

 

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

 

      1. This act shall be known and may be cited as the "Jobs from Housing and Economic Development Bond Act."

 

      2. The Legislature hereby finds that:

      a. Economic conditions in New Jersey, along with those in other northeastern states, have been slow to recover from the downturn of the last few years. This sluggish recovery has taken its toll on working families, the unemployed, and the underemployed.

      b. Small businesses and the construction industry are an important source of primary and secondary employment in the State, especially in New Jersey's cities and low income communities.

      c. Small businesses and the construction industry in particular, especially in New Jersey's cities and low income areas, have experienced great difficulty securing private financing because they often do not satisfy conventional underwriting criteria and suffer disproportionately from the general pattern of disinvestment in the cities and low income areas. More needs to be done, therefore, to bolster small business development and expansion within New Jersey's cities.

      d. The lack of capital for housing production, planning and development, construction financing, long-term financing, and project-based assistance has served as a major impediment to the production of affordable housing in this State, whether that housing is newly constructed or rehabilitated. As a result, the entire State continues to suffer from a shortage of safe, decent rental and owner-occupied housing affordable to low and moderate income households, including housing for the elderly and for disabled persons.

      e. The ability of low and moderate income households, including households with elderly and disabled persons, to purchase housing is limited, in part, by their inability to make down payments and pay closing costs.

      f. The lack of safe, decent, affordable housing discourages job-creating businesses from moving to, and remaining in this State. Because access to safe, decent affordable housing and opportunities for remunerative employment are intimately connected, it is sound policy to seek to address these problems in a manner which is mutually reinforcing.

      g. Experience has shown that nonprofit entities can be efficient and effective producers and managers of low and moderate income housing. Experience also has shown that nonprofit entities can be efficient and effective catalysts for the promotion of private entrepreneurship and small businesses in cities and low income areas.

      h. Accordingly, it is the purpose of this act to promote job creation by providing funding to foster the development of small businesses in New Jersey's cities and low income areas, to provide funds for the construction and rehabilitation of very low, low, and moderate income housing throughout the State, including housing for households with elderly and disabled persons, and to assure the long-term economic viability of such housing, to fund loans, grants and other forms of assistance to low, moderate, and middle income households for down payment and closing costs, and to provide funds to build the capacity of nonprofit entities to construct and rehabilitate low and moderate income housing and foster economic development.

      i. The "Jobs from Housing and Economic Development Bond Act," P.L. , c. (now pending before the Legislature as this bill), would provide the financial resources necessary to stimulate the small business sector throughout the State, particularly in the State's cities and low income areas, and thereby promote significant gains in primary and secondary employment in those areas most in need of economic revitalization.

 

      3. As used in this act:

      "Affordable" means, (1) in the case of owner-occupied housing, housing whose sales price is such that households throughout the relevant income range need pay no more than 25 percent of gross household income for principal, interest, insurance, taxes, homeowner's association fees and assessments, and fees for sewerage, water and solid waste disposal. Payments required for principal and interest shall be determined on the basis of 95 percent mortgages at rates generally available within the housing market in the relevant housing region; (2) in the case of rental housing, "affordable" means housing whose rents and fees are such that households throughout the relevant income range need pay no more than 30 percent of gross household income for rents and fees, including heat, hot water, gas, electricity, water, sewerage, and solid waste disposal. Affordable housing shall be subject to resale and rental controls to assure that it continues to be reserved for and affordable to very low income households, low income households and moderate income households for at least 30 years.

            "Bonds" means bonds authorized to be issued, or issued, under this act.

      "Commissioner" means the Commissioner of Community Affairs.

      "Costs of construction and rehabilitation" means the expenses incurred in connection with: the planning for the development, conversion or rehabilitation of low or moderate income housing; the acquisition by purchase, lease, or otherwise, of land or buildings for the development, conversion or rehabilitation of low or moderate income housing; the preparation of land for development of low or moderate income housing, including the demolition of existing structures on the land; the construction, reconstruction, or rehabilitation of low or moderate income housing; the conversion of buildings for use as low and moderate income housing; the acquisition by purchase, lease, or otherwise, and the development of any real or personal property for use in connection with a project authorized by this act, including any rights or interests therein, the execution of any agreements and franchises deemed by the commissioner to be necessary or useful and convenient in connection with any housing authorized by this act; the procurement of engineering, inspection, planning, legal, accounting, financial, or other professional services, including the services of a bond register or an authenticating agent; the administrative expenses of underwriting, administering, servicing, and collecting loans; the issuance of bonds, or any interest or discount thereon; project-based rental assistance to very low income tenants occupying housing constructed or rehabilitated with loans, grants, or other forms of assistance provided under this act; the administrative, organizational, operating or other expenses incident to the financing, completing, and marketing, counseling prospective purchasers or tenants, selecting purchasers or tenants for, and placing into service of, any housing development constructed or rehabilitated under this act; the issuance of bonds, or any interest or discount thereon; the payment of the fees of independent contractors to perform any of the foregoing functions; the establishment of a reserve fund or funds for working capital, operating, maintenance, or replacement expenses and for the payment or security of principal or interest on bonds, as the Director of the Division of Budget and Accounting in the Department of the Treasury may determine; and reimbursement to any fund of the State of moneys which may have been transferred or advanced therefrom to any fund created by this act, or any moneys which may have been expended therefrom for, or in connection with, this act. No administrative expenses incurred by a department pursuant to this act shall be paid from any fund created pursuant to this act.

      "Costs of fostering the development and growth of small businesses" means the expenses incurred in connection with: planning for the fostering of development and growth of small businesses; the acquisition by purchase, lease, or otherwise, of land or buildings to house small business; the preparation of land for development of buildings to house small businesses, including the demolition of existing structures on the land; the construction, reconstruction, or rehabilitation of buildings to house small businesses; the conversion of existing buildings to house small businesses; the acquisition by purchase, lease, or otherwise, of fixtures, machinery, equipment, and other personal property for the operation of small businesses; the acquisition by purchase, lease, license or otherwise, of patents, copyrights, trademarks, service marks, franchises, and other intangible property for the operation of small businesses; acquisition by purchase, lease, or otherwise of raw materials and inventory; loans or other assistance for working capital; the procurement of engineering, inspection, planning, legal, accounting, financial, graphic design, advertising or other professional services, including the services of a bond register or an authenticating agent; training of current and potential owners of small businesses; development of business and marketing plans; the administrative expenses of underwriting, administering, servicing, and collecting loans; the issuance of bonds, or any interest or discount thereon; payment of the fees of independent contractors to perform any of the foregoing functions; the establishment of a reserve fund or funds for working capital, operating, maintenance, or replacement expenses and for the payment or security of principal or interest on bonds, as the Director of the Division of Budget and Accounting in the Department of the Treasury may determine; and reimbursement to any fund of the State of moneys which may have been transferred or advanced therefrom to any fund created by this act, or any moneys which may have been expended therefrom for, or in connection with, this act. No administrative expenses incurred by a department pursuant to this act shall be paid from any fund created pursuant to this act.

      "Eligible small business" means an entity that:

            a. sells goods or services;

            b. is independently owned and operated;

            c. has no more than 25 employees, provided that the corporation may by regulation establish an alternative standard for retail grocery stores;

            d. has its principal place of business in an urban area or a low income area; and

            e. either (1) 51 percent or more of the equity in the business is held by persons residing in the municipality which is the primary place of business or (2) 51 percent or more of the current employees reside in the municipality.

            f. is participating or has enrolled in a bona fide entrepreneural training program which includes technical assistance to formulate a small business plan.

      "Government securities" means any bonds or other obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency, to the extent those obligations are unconditionally guaranteed by the United States of America, and any certificates or any other evidences of an ownership interest in those obligations of, or unconditionally guaranteed by, the United States of America or in specified portions which may consist of the principal of, or the interest on, those obligations;

      "Grant" means payment of funds to a recipient under terms that do not require the recipient to repay the funds under any circumstances, provided that the funds are used lawfully and in accordance with those terms.

       "Housing region" means "housing region" as that term is or may hereafter be defined pursuant to subsection b. of section 4 of P.L.1985, c.222 (C.52:27D-304).

      "Loan" means payment of funds to a recipient under terms that require repayment, but which requirement to repay may be delayed or conditional, or may be subordinated to other specified financial obligations. Loans made under this act may be of a nature similar to those made by the Commissioner of Community Affairs under the department's "Balanced Housing Program."

      "Low income areas" means municipalities in which the median gross annual household income, as reported in the most recent federal decennial census, is less than or equal to 80 percent of the median gross annual household income for all households in the State.

      "Low income household" means a household with a gross household income less than or equal to 50 percent of the median gross household income for households of similar size within the housing region in which the housing is located. "Low income household" includes "very low income household."

      "Low income housing" means housing affordable to a low income household.

      "Middle income household" means a household with a gross household income between 80 and 115 percent of the median gross household income for households of similar size within the housing region in which the housing is located.

      "Middle income housing" means housing affordable to a middle income household.

      "Moderate income household" means a household with a gross household income greater than 50 and equal to or less than 80 percent of the median gross household income for households of similar size within the housing region in which the housing is located.

      "Moderate income housing" means housing affordable to a moderate income household.

      "Nonprofit entity" means an entity that is exempt from federal taxation on income pursuant to 26 U.S.C.§501(c)(3), as amended, or any successor provision of federal law, and is organized for the purpose of providing low and moderate income housing or fostering economic development.

      "Urban areas" means municipalities eligible to receive "urban aid" under P.L.1978, c.14 (C.52:27D-178 et seq.).

      "Very low income household" means a household with a gross household income below 30 percent of the median gross household income for a household of similar size within the housing region in which the housing is located.

      "Very low income housing means housing affordable to a very low income household.

 

      4. Bonds of the State of New Jersey are authorized to be issued in the aggregate principal amount of $290,000,000 for the following purposes:

      a. $216,000,000 to establish an "Affordable Housing Development Fund," which shall be a non-lapsing revolving fund administered by the Department of Community Affairs for providing loans, loan guarantees, equity investments, grants or other forms of assistance for the costs of construction and rehabilitation of safe, decent rental and owner-occupied housing affordable to low and moderate income households, including housing for households with elderly or disabled persons. Of this amount, $50,000,000 shall be allocated to project-based assistance to assure that, to the maximum extent feasible, rental housing constructed or rehabilitated with assistance from the Affordable Housing Development Fund is affordable to very low income households, and $6,000,000 shall be allocated to grants to nonprofit entities for planning for the development of housing affordable to low and moderate income households.

      b. $30,000,000 to establish a "Homeownership Fund," which shall be a non-lapsing revolving fund administered by the New Jersey Housing and Mortgage Finance Agency, for the purpose of providing loans, loan guarantees, grants, and other forms of assistance to enable low, moderate, and middle income households to make downpayments, pay closing costs, and pay other one-time expenses associated with the purchase of housing, including condominium and cooperative housing.

      c. $44,000,000 to establish an "Economic Development Fund," which shall be a non-lapsing revolving fund administered by the Economic Development Authority for the purpose of providing loans, loan guarantees, equity investments, grants and other forms of assistance to pay the costs of fostering the development and growth of eligible small businesses in urban areas and low income areas. Of this $44,000,000, a maximum of $3,000,000 shall be allocated to grants to nonprofit entities for planning for the fostering the development and growth of eligible small businesses in urban and low income areas and a maximum of $4,000,000 shall be for the purposes of training present and prospective owners, managers, and employees of eligible small businesses.

 

      5. Expenditures for the purposes set forth in section 4 of this act shall be made in accordance with the provisions of P.L. , c. (C. ) (now pending before the Legislature as Assembly Committee Substitute for Assembly Bill No.1442 of 1996).

 

      6. The bonds authorized under this act shall be serial bonds, term bonds, or a combination thereof, and shall be known as "Jobs from Housing and Economic Development Bonds." They shall be issued from time to time as the issuing officials herein named shall determine and may be issued in coupon form, fully-registered form or book-entry form. The bonds may be subject to redemption prior to maturity and shall mature and be paid not later than 30 years from the respective dates of their issuance.

 

      7. The Governor, the State Treasurer and the Director of the Division of Budget and Accounting in the Department of the Treasury, or any two of these officials, herein referred to as "the issuing officials," are authorized to carry out the provisions of this act relating to the issuance of bonds, and shall determine all matters in connection therewith, subject to the provisions of this act. If an issuing official is absent from the State or incapable of acting for any reason, the powers and duties of that issuing official shall be exercised and performed by the person authorized by law to act in an official capacity in the place of that issuing official.

 

      8. Bonds issued in accordance with the provisions of this act shall be direct obligations of the State of New Jersey, and the faith and credit of the State are pledged for the payment of the interest and redemption premium thereon, if any, when due, and for the payment of the principal thereof at maturity or earlier redemption date. The principal of and interest on the bonds shall be exempt from taxation by the State or by any county, municipality or other taxing district of the State.

 

      9. The bonds shall be signed in the name of the State by means of the manual or facsimile signature of the Governor under the Great Seal of the State, which seal may be by facsimile or by way of any other form of reproduction on the bonds, and attested by the manual or facsimile signature of the Secretary of State, or an Assistant Secretary of State, and shall be countersigned by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury and may be manually authenticated by an authenticating agent or bond registrar, as the issuing officials shall determine. Interest coupons, if any, attached to the bonds shall be signed by the facsimile signature of the Director of the Division of Budget and Accounting in the Department of the Treasury. The bonds may be issued notwithstanding that an official signing them or whose manual or facsimile signature appears on the bonds or coupons has ceased to hold office at the time of issuance, or at the time of the delivery of the bonds to the purchaser thereof.

 

      10. a. The bonds shall recite that they are issued for the purposes set forth in section 4 of this act, that they are issued pursuant to this act, that this act was submitted to the people of the State at the general election held in the month of November, 1996, and that this act was approved by a majority of the legally qualified voters of the State voting thereon at the election. This recital shall be conclusive evidence of the authority of the State to issue the bonds and their validity. Any bonds containing this recital shall, in any suit, action or proceeding involving their validity, be conclusively deemed to be fully authorized by this act and to have been issued, sold, executed and delivered in conformity herewith and with all other provisions of law applicable hereto, and shall be incontestable for any cause.

      b. The bonds shall be issued in the denominations and in the form or forms, whether coupon, fully-registered or book-entry, and with or without provisions for the interchangeability thereof, as may be determined by the issuing officials.

 

      11. When the bonds are issued from time to time, the bonds of each issue shall constitute a separate series to be designated by the issuing officials. Each series of bonds shall bear such rate or rates of interest as may be determined by the issuing officials, which interest shall be payable semiannually; except that the first and last interest periods may be longer or shorter, in order that the intervening semiannual payments may be at convenient dates.

 

      12. The bonds shall be issued and sold at the price or prices and under the terms, conditions and regulations as the issuing officials may prescribe, after notice of the sale, published at least once in at least three newspapers published in this State, and at least once in a publication carrying municipal bond notices and devoted primarily to financial news, published in this State or in the City of New York, the first notice to appear at least five days prior to the day of bidding. The notice of sale may contain a provision to the effect that any bid in pursuance thereof may be rejected. In the event of rejection or failure to receive any acceptable bid, the issuing officials, at any time within 60 days from the date of the advertised sale, may sell the bonds at a private sale at such price or prices and under the terms and conditions as the issuing officials may prescribe. The issuing officials may sell all or part of the bonds of any series as issued to any State fund or to the federal government or any agency thereof, at a private sale, without advertisement.

 

      13. Until permanent bonds are prepared, the issuing officials may issue temporary bonds in a form and with those privileges as to their registration and exchange for permanent bonds as may be determined by the issuing officials.

 

      14. Each separate issuance of bonds may be issued on terms that render the interest taxable or exempt from taxation under federal law, as may be determined by the issuing officials consistent with the purposes of this act and P.L. ,c. (C. )(now pending before the Legislature as Assembly Committee Substitute for Assembly Bill No. 1442 of 1996). It is the intention of the Legislature that bonds issued for the purpose of funding rental housing under the Affordable Housing Development Fund be issued under terms that would render the interest from such bonds exempt from taxation.

 

      15. The proceeds derived from the sale of bonds shall be paid to the State Treasurer to be held by the State Treasurer in a separate fund, which shall be known as the "Jobs from Housing and Economic Development Fund." The proceeds of this fund shall be deposited in those depositories as may be selected by the State Treasurer to the credit of the fund.

 

      16. a. The moneys in the "Jobs from Housing and Economic Development Fund" are specifically dedicated and shall be applied to the cost of the purposes set forth in section 4 of this act. However, no moneys in the fund shall be expended for those purposes, except as otherwise authorized by this act, without the specific appropriations thereof by the Legislature, but bonds may be issued as herein provided, notwithstanding that the Legislature shall not have then adopted an act making a specific appropriation of any of the moneys.

      b. At any time prior to the issuance and sale of bonds under this act, the State Treasurer is authorized to transfer from any available moneys in any fund of the treasury of the State to the credit of the "Jobs from Housing and Economic Development Fund" those sums as the State Treasurer may deem necessary. The sums so transferred shall be returned to the same fund of the treasury of the State by the State Treasurer from the proceeds of the sale of the first issue of bonds.

      c. Pending their application to the purposes provided in this act, the moneys in the "Jobs from Housing and Economic Development Fund" may be invested and reinvested as are other trust funds in the custody of the State Treasurer, in the manner provided by law. Net earnings received from the investment or deposit of moneys in the "Jobs from Housing and Economic Development Fund" shall be paid into the General Fund.

 

      17. If any coupon bond, coupon or registered bond is lost, mutilated or destroyed, a new bond or coupon shall be executed and delivered of like tenor, in substitution for the lost, mutilated or destroyed bond or coupon, upon the owner furnishing to the issuing officials evidence satisfactory to them of the loss, mutilation or destruction of the bond or coupon, the ownership thereof, and security, indemnity and reimbursement for expenses connected therewith, as the issuing officials may require.

 

      18. The accrued interest, if any, received upon the sale of the bonds shall be applied to the discharge of a like amount of interest upon the bonds when due. Any expense incurred by the issuing officials for advertising, engraving, printing, clerical, authenticating, registering, legal or other services necessary to carry out the duties imposed upon them by the provisions of this act shall be paid from the proceeds of the sale of the bonds by the State Treasurer, upon the warrant of the Director of the Division of Budget and Accounting in the Department of the Treasury, in the same manner as other obligations of the State are paid.

 

      19. Bonds of each series issued hereunder shall mature, including any sinking fund redemptions, not later than the 30th year from the date of issue of that series, and in amounts as shall be determined by the issuing officials. The issuing officials may reserve to the State by appropriate provision in the bonds of any series the power to redeem any of the bonds prior to maturity at such price or prices and upon such terms and conditions as may be provided in the bonds.

 

      20. Any bond or bonds issued hereunder, which are subject to the "Refunding Bond Act of 1985," P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.), shall no longer be deemed to be outstanding, shall no longer constitute a direct obligation of the State of New Jersey, and the faith and credit of the State shall no longer be pledged to the payment of the principal of, redemption premium, if any, and interest on the bonds, and the bonds shall be secured solely by and payable solely from moneys and government securities deposited in trust with one or more trustees or escrow agents, which trustees and escrow agents shall be trust companies or national or state banks having powers of a trust company, located either within or without the State, as provided herein, whenever there shall be deposited in trust with the trustees or escrow agents, as provided herein, either moneys or government securities, including government securities issued or held in book-entry form on the books of the Department of Treasury of the United States, the principal of and interest on which when due will provide money which, together with the moneys, if any, deposited with the trustees or escrow agents at the same time, shall be sufficient to pay when due the principal of, redemption premium, if any, and interest due and to become due on the bonds on or prior to the redemption date or maturity date thereof, as the case may be; provided the government securities shall not be subject to redemption prior to their maturity other than at the option of the holder thereof. The State of New Jersey hereby covenants with the holders of any bonds for which government securities or moneys shall have been deposited in trust with the trustees or escrow agents as provided in this section that, except as otherwise provided in this section, neither the government securities nor moneys so deposited with the trustees or escrow agents shall be withdrawn or used by the State for any purpose other than, and shall be held in trust for, the payment of the principal of, redemption premium, if any, and interest to become due on the bonds; provided that any cash received from the principal or interest payments on the government securities deposited with the trustees or escrow agents, to the extent the cash will not be required at any time for that purpose, shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien, pledge or assignment securing the bonds; and to the extent the cash will be required for that purpose at a later date, shall, to the extent practicable and legally permissible, be reinvested in government securities maturing at times and in amounts sufficient to pay when due the principal of, redemption premium, if any, and interest to become due on the bonds on and prior to the redemption date or maturity date thereof, as the case may be, and interest earned from the reinvestment shall be paid over to the State, as received by the trustees or escrow agents, free and clear of any trust, lien or pledge securing the bonds.

      Notwithstanding anything to the contrary contained herein:

      a. the trustees or escrow agents shall, if so directed by the issuing officials, apply moneys on deposit with the trustees or escrow agents pursuant to the provisions of this section, and redeem or sell government securities so deposited with the trustees or escrow agents, and apply the proceeds thereof to (1) the purchase of the bonds which were refinanced by the deposit with the trustees or escrow agents of the moneys and government securities and immediately thereafter cancel all bonds so purchased, or (2) the purchase of different government securities; provided however, that the moneys and government securities on deposit with the trustees or escrow agents after the purchase and cancellation of the bonds or the purchase of different government securities shall be sufficient to pay when due the principal of, redemption premium, if any, and interest on all other bonds in respect of which the moneys and government securities were deposited with the trustees or escrow agents on or prior to the redemption date or maturity date thereof, as the case may be; and

      b. in the event that on any date, as a result of any purchases and cancellations of bonds or any purchases of different government securities, as provided in this sentence, the total amount of moneys and government securities remaining on deposit with the trustees or escrow agents is in excess of the total amount which would have been required to be deposited with the trustees or escrow agents on that date in respect of the remaining bonds for which the deposit was made in order to pay when due the principal of, redemption premium, if any, and interest on the remaining bonds, the trustees or escrow agents shall, if so directed by the issuing officials, pay the amount of the excess to the State, free and clear of any trust, lien, pledge or assignment securing the refunding bonds.

 

      21. Refunding bonds issued pursuant to P.L.1985, c.74 as amended by P.L.1992, c.182 (C.49:2B-1 et seq.), may be consolidated with bonds issued pursuant to section 6 of this act or with bonds issued pursuant to any other act for purposes of sale.

 

      22. To provide funds to meet the interest and principal payment requirements for the bonds issued under this act and outstanding, there is appropriated in the order following:

      a. Revenue derived from the collection of taxes under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), or so much thereof as may be required; and

      b. If, at any time, funds necessary to meet the interest, redemption premium, if any, and principal payments on outstanding bonds issued under this act are insufficient or not available, there shall be assessed, levied and collected annually in each of the municipalities of the counties of this State, a tax on the real and personal property upon which municipal taxes are or shall be assessed, levied and collected, sufficient to meet the interest on all outstanding bonds issued hereunder and on the bonds proposed to be issued under this act in the calendar year in which the tax is to be raised and for the payment of bonds falling due in the year following the year for which the tax is levied. The tax shall be assessed, levied and collected in the same manner and at the same time as other taxes upon real and personal property. The governing body of each municipality shall pay to the county treasurer of the county in which the municipality is located, on or before December 15 in each year, the amount of tax herein directed to be assessed and levied, and the county treasurer shall pay the amount of the tax to the State Treasurer on or before December 20 in each year.

      If on or before December 31 in any year, the issuing officials, by resolution, determine that there are moneys in the General Fund beyond the needs of the State, sufficient to pay the principal of bonds falling due and all interest and redemption premium, if any, payable in the ensuing calendar year, the issuing officials shall file the resolution in the office of the State Treasurer, whereupon the State Treasurer shall transfer the moneys to a separate fund to be designated by the State Treasurer, and shall pay the principal, redemption premium, if any, and interest out of that fund as the same shall become due and payable, and the other sources of payment of the principal, redemption premium, if any, and interest provided for in this section shall not then be available, and the receipts for the year from the tax specified in subsection a. of this section shall be considered and treated as part of the General Fund, available for general purposes.

 

      23. Should the State Treasurer, by December 31 of any year, deem it necessary, because of the insufficiency of funds collected from the sources of revenues as provided in this act, to meet the interest and principal payments for the year after the ensuing year, then the State Treasurer shall certify to the Director of the Division of Budget and Accounting in the Department of the Treasury the amount necessary to be raised by taxation for those purposes, the same to be assessed, levied and collected for and in the ensuing calendar year. The director shall, on or before March 1 following, calculate the amount in dollars to be assessed, levied and collected in each county as herein set forth. This calculation shall be based upon the corrected assessed valuation of each county for the year preceding the year in which the tax is to be assessed, but the tax shall be assessed, levied and collected upon the assessed valuation of the year in which the tax is assessed and levied. The director shall certify the amount to the county board of taxation and the treasurer of each county. The county board of taxation shall include the proper amount in the current tax levy of the several taxing districts of the county in proportion to the ratables as ascertained for the current year.

 

      24. For the purpose of complying with the provisions of the State Constitution, this act shall be submitted to the people at the general election to be held in the month of November, 1996. To inform the people of the contents of this act, it shall be the duty of the Secretary of State, after this section takes effect and at least 60 days prior to the election, to cause this act to be published at least once in one or more newspapers of each county, if any newspapers be published therein and to notify the clerk of each county of this State of the passage of this act; and the clerks respectively, in accordance with the instructions of the Secretary of State, shall have printed on each of the ballots the following:

      If you approve of the act entitled below make a cross (X), plus (+) or check (•) in the square opposite the word "Yes."

      If you disapprove of the act entitled below, make a cross (X), plus (+) or check (•) in the square opposite the word "No."

      If voting machines are used, a vote of "Yes" or "No" shall be equivalent to these markings respectively.




 

 

JOBS FROM HOUSING AND ECONOMIC DEVELOPMENT FUND BOND ISSUE



















 

YES

Shall the "Jobs from Housing and Economic Development Bond Act," which authorizes the State of New Jersey to issue general obligation bonds in the amount of $290,000,000 for the purposes of funding grants, loans, and other forms of assistance to foster the development and growth of small businesses in urban and low income areas, to facilitate the construction and rehabilitation of safe, decent rental and owner-occupied housing for low and moderate income households, to facilitate the purchase of safe, decent housing by low, moderate, and middle income households, to assist nonprofit entities to construct or rehabilitate safe, decent housing affordable to low and moderate income households and to foster the creation of small businesses and employment in urban and low income areas, be approved?

 

 

INTERPRETIVE STATEMENT













 

NO

If this act is approved, the State would sell $290 million of general obligation bonds. The proceeds from the sale of these bonds will be used for the purpose of providing loans, loan guarantees, equity investments, grants and other forms of assistance 1) to help small businesses in urban and low income areas to develop and grow, 2) for construction and rehabilitation of safe, decent housing for low and moderate income households, and 3) to help low, moderate, and middle income households purchase safe and decent housing.

 

      The fact and date of the approval or passage of this act, as the case may be, may be inserted in the appropriate place after the title in the ballot. No other requirements of law of any kind or character as to notice or procedure, except as herein provided, need be adhered to.

      The votes cast for and against the approval of this act, by ballot or voting machine, shall be counted and the result thereof returned by the election officer, and a canvass of the election had in the same manner as is provided for by law in the case of the election of a Governor, and the approval or disapproval of this act so determined shall be declared in the same manner as the result of an election for a Governor, and if there is a majority of all votes cast for and against it at the election in favor of the approval of this act, then all the provisions of this act not made effective theretofore shall take effect forthwith.

 

      25. There is appropriated the sum of $5,000 to the Department of State for expenses in connection with the publication of notice pursuant to section 24 of this act.

 

      26. This section and sections 24 and 25 of this act shall take effect immediately and the remainder of this act shall take effect as and when provided in section 24. 

                             

Authorizes creation of $290 million in debt to foster development of affordable housing and growth of small businesses.