Obtaining financing for your development project is one of the most important aspects of moving your development plans from paper to reality. Recently, the New Jersey Economic Development Authority (the “Authority”) created a Real Estate Impact Fund (the “REIF”). The REIF supports private and public redevelopment projects on underutilized property in New Jersey by facilitating the procurement of financing for small and mid-size development projects.
Through the REIF’s private component, for-profit and non-profit developers and businesses may obtain up to $3 million in financing from the Authority. REIF funding may be used for a variety of purposes, including property acquisition and assembly; demolition and site clearance; environmental investigation and remediation; pre-development costs; on-site infrastructure; general construction and/or rehabilitation; and associated soft development expenses.
To be eligible for REIF financing, the development project must be located in a “targeted area.” Targeted areas include: Urban Aid Municipalities; projects in Fort Monmouth; and New Jersey university/college sponsored projects that promote emerging technologies or industries. The total cost of the planned development project should not exceed $15 million. In addition, the project must create or maintain one full-time job for every $65,000 in REIF financing procured.
REIF-financed projects can be either new construction or substantial rehabilitation. Potential REIF-eligible projects include: mixed-use (residential and minimum 20% commercial); retail; office; industrial; entertainment venues; associated parking garage structures; and/or land acquisition/assemblages. Residential only projects are not eligible to receive REIF financing.
Obtaining REIF financing requires the completion of an online application and compliance with other certain requirements, such as consulting with a New Jersey Business Development Officer. We can assist you in preparing your application and complying with the application process requirements.
Please contact Rob Gundlach for more information at 215-918-3636 or rgundlach@foxrothschild.com.