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A 2109

Establishes the "Neighborhood Scholar Revitalization Pilot Program."

2024-2025 Regular Session Introduced by Reginald Atkins and 6 co-sponsors

Establishes a 4-city pilot reimbursing up to $7,000 of student loans for grads who move to designated low-income NJ neighborhoods and stay 24 months.

Introduced in the Assembly, Referred to Assembly Community Development and Women's Affairs Committee
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Bill Summary · A 2109

Summary — A2109 (Neighborhood Scholar Revitalization Pilot Program)

Status: Introduced in the Assembly (01/15/2025); Referred to Assembly Community Development and Women's Affairs Committee. Print #: A2109 / A2109A. Primary sponsor: Asm. Sarah Clark. Cosponsors: Dana Levenberg, Harvey Epstein, Jen Lunsford. Companion Senate bills: S2732, S7619.

Purpose

Establishes a pilot program administered by the Urban Enterprise Zone Authority to attract college graduates into targeted, low‑income residential neighborhoods of older New Jersey cities by reimbursing a portion of qualifying student loan debt when graduates commit to live in those neighborhoods for at least two years. The broader intent is to help restore municipal tax bases and spur neighborhood revitalization.

Key provisions

  • Creates the "Neighborhood Scholar Revitalization Student Loan Reimbursement Fund" (to be held by the State Treasurer) as the repository for contributions and transfers (including from the Enterprise Zone Assistance Fund).
  • Pilot municipalities: Camden (Camden County), Trenton (Mercer), Jersey City (Hudson), Paterson (Passaic).
  • Eligible participants ("qualified participants"):
    • Graduates of an accredited 2- or 4-year college or university;
    • Have at least $7,000 of outstanding student loan debt at application.
  • Participation limits: up to 200 qualified participants in each pilot municipality (new participants may replace those who fail to complete the commitment).
  • Participant commitment and benefit:
    • Must maintain principal residence within a designated "targeted residential neighborhood" for at least 24 months (may move within designated neighborhoods and remain eligible).
    • Upon successful completion, participant receives a $7,000 student loan reimbursement payment ($3,500 per 12-month period).
    • Reimbursement payments are excluded from New Jersey gross income tax and are not counted toward income limits for State programs.
  • Targeted residential neighborhoods:
    • Designated by each pilot municipality and approved by the Commissioner of Community Affairs.
    • Eligible census tracts are those with median household income ≤ 60% of the housing region median (for a 3-person household), using decennial census data. DCA will maintain and publish lists online.
  • Funding and tax incentive for businesses:
    • Businesses located in an enterprise zone within a pilot municipality and subject to the Corporation Business Tax may make "regulated contributions" to the Fund.
    • Those contributions qualify for a neighborhood scholar revitalization tax credit against corporate business tax (amount equals contribution), subject to limits set by the Authority.
  • The Authority, in consultation with DCA, will promulgate rules and work with the NJ Housing and Mortgage Finance Authority to offer favorable home‑purchase loans to participants.
  • Reporting: Authority must submit an evaluation report to Governor and Legislature no later than three years after the law’s effective date, with recommendations on expansion or termination.

Administration & timeline

  • Program to be established and administered by the Urban Enterprise Zone Authority with DCA collaboration.
  • DCA maintains eligible tract lists and publishes targeted neighborhood lists online.
  • Report on pilot efficacy due within three years of effective date.

Potential impacts and considerations

  • Intended benefits: attract young professionals/graduates to low‑income neighborhoods, increase home purchases, stabilize and expand local tax bases, and partially reduce student debt burdens for participants.
  • Fiscal considerations: reduced corporate tax revenue to the extent tax credits offset contributions; program costs depend on uptake (maximum reimbursements per cohort: up to $7,000 × 200 participants × 4 municipalities = $5.6 million per full cohort, funded by contributions/transfers).
  • Administrative requirements: neighborhood designation, participant verification, contract enforcement, and program evaluation.

This summary reflects the introduced version of A2109 (as printed A2109A); certain sections (e.g., full tax credit application rules) are subject to the text truncated in the provided version and to rules/regulations to be promulgated by the Authority.

Compiled from official sources — confirm details with the bill’s official record.

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