A tax credit initiative that helps finance commercial, residential, and affordable housing developments throughout the Garden State has been temporarily suspended as officials look for ways to improve the program.
In a press release, the New Jersey Economic Development Authority announced that it is putting a pause on its Aspire program. NJEDA Chief Executive Officer Evan Weiss said that while Aspire has supported more than 40 projects across the state that created more than 7,500 new housing units in recent years, the program is not as efficient as leaders would like.
“Through listening sessions, dozens of conversations, and our own data analysis, it is clear that Aspire can be a difficult tool to use,” Weiss said. “It can also be an expensive one, with as much as half of Aspire credit awards paying for transaction costs.”
Weiss additionally noted that demand for the program far exceeds available resources, partially necessitating the pause. The NJEDA will still process current applications during the break, and funding for existing projects will be protected.
“We are committed to updating the program with clearer standards, a stronger emphasis on fiscal discipline and project readiness, and, most importantly, alignment with Governor Sherrill’s economic development and budget priorities,” Weiss said. “We look forward to working with key stakeholders, industry leaders, and government partners to ensure changes are done responsibly and will result in the greatest economic impact for communities across the state.”
The Aspire tax credits have financed a myriad of planned and completed projects around New Jersey. Our reporting from just three weeks ago on an effort to convert the historic Firemen’s Insurance Company property to affordable housing in Newark was granted Aspire tax credits as part of its approval.
The state expects to reopen applications for Aspire in the fall, although no firm date for the resumption of the program has been announced.
