Presentation for Trends in Redevelopment Finance session.

2. The New Jersey Redevelopment Authority (NJRA) is a state
redevelopment financing authority committed to revitalizing urban New
Jersey. As urban experts, we customize project financing to invest financial
resources into redevelopment projects that enhance New Jersey's cities.
The vision of the NJRA is to be the premier catalyst for investments that
sustainably grow and develop urban communities.

3. IMPACT
1997-2017
•$418 million in approved
investments
•Leveraged $3.8 billion in total
investments
• 1:9 Average Total Leveraged Ratio

4. •266 Projects
• 15,218 Total Housing Units
• 10,075,317 Total SF of Commercial
Space Developed
• 1,490 Total Jobs Created
IMPACT
1997-2017

5. Redevelopment Investment Fund (RIF)
Taxable and Tax-Exempt Bond Financing
New Jersey Urban SiteAcquisition Program (NJUSA)
NJRA Redevelopment Training Institute (RTI)

6. ELIGIBLE USES
Term Loans
Real Estate Equity Loan
Guarantees
PROGRAM DESCRIPTION
The NJRA manages this flexible
investment fund that provides
debt and equity financing for
business and real estate
ventures.

7. ELIGIBLE USES
Land and building acquisition
New construction, renovations
or building expansion
Purchase of new equipment
Debt financing/working capital
$100 million annual bonding
capacity
Tax-exempt and taxable bonds- -
We're There First
PROGRAM DESCRIPTION

8. PROGRAM DESCRIPTION
$20 million revolving loan fund
Upfront short term capital
Assumes initial risk to jump start
redevelopment projects
Flexible Terms
- - -
ELIGIBLE USES
Site Acquisition for properties located in designated
redevelopment areas and areas in need of
redevelopment

9. The New Jersey Redevelopment Authority
Redevelopment Training Institute (NJRA RTI)
offers training courses, which focus on
development and redevelopment fundamentals,
topics and issues. The RTI is designed to provide a
body of knowledge of the redevelopment and real
estate development process. Classes, which focus
on urban and suburban mixed used and commercial
communities, are with the goal of providing case
driven real life example instruction resulting in an
enhanced level of knowledge for participants to be
better engaged in the redevelopment and planning
process.

10. PROJECT FINANCE
BASIC
Introduce financing tools and the types of financing available in today’s market for residential and
commercial development; Learn basic finance concepts and terminology including Net Operating
Income (NOI), Net Present Value (NPV), and debt coverage ratio (DCR), and how to construct
development budgets and operating pro formas using Excel
INTERMEDIATE
Learn about the development and analysis of project financials including the calculation of loan
payments, debt capacity, net present value (NPV), internal rate of return (IRR), and other financial
calculations. Additionally, learn how to create a basic sensitivity analysis using Microsoft Excel.
ADVANCED
Learn how to use real estate finance to structure capital stacks and waterfalls to make buy/sell/
hold decision, compare and contrast investment opportunities and effectuate development projects
while balancing risk/reward ratio.

11. REDEVELOPMENT PLANNING LAW PROCESS
The RTI provides a broad understanding of the crucial issues,
steps and challenges associated with the New Jersey Local
Redevelopment and Housing Law (LRHL).
Legal issues and challenges
Redevelopment planning process
Community engagement
Redeveloper selection
Legal and public policy

12. SPECIAL OFFERINGS
Comprehensive Real Estate Development (CRED)
While touring actual real estate projects; rudiments of real estate develop
ment are defined, examined and discussed by real project team
professionals.
We're There First
Municipal Consultations
In partnership with industry experts the Redevelopment Training Institute can
provide one-on-one consultation services to ensure that your municipality's
redevelopment goals are achieved.
Customized Trainings
In partnership with industry experts the Redevelopment Training Institute can
provide one-on-one consultation services to ensure that your company’s
redevelopment knowledge is current and sound.

13. • created as part of the Tax Cuts and Jobs Act
• a federal economic development tool aiming to improve the
outcomes of distressed communities around the country.
Opportunity Zones are
• low-income census tracts that offer tax incentives to groups who
invest and hold their capital gains in Zone assets or property.
By investing in Opportunity Zones, investors stand to gain a
temporary deferral on their capital gains taxes if they hold their
investments for at least 5 years, and a permanent exclusion from a
tax on capital gains if the investments are held for 10 years.
OPPORTUNITY ZONES

14. Opportunity Zones must be created within "low-income
communities," as defined by Section 45D(e) of the Internal Revenue
Code (the New Markets Tax Credits Program uses the same
definition). In Section 45D(e), "low income communities" are any
census tract that have a poverty rate of at least 20 percent, or the
median family income does not exceed 80 percent of statewide
median family income. If in a metropolitan area, the median family
area for such tract must not exceed 80 percent of the greater of
statewide median family income or the metropolitan area median
family income.
OPPORTUNITY ZONES

15. Opportunity Zones are designated as such by the
governor or chief executive of a given state,
district, or territory. All 50 states, the District of
Columbia, and U.S. territories are eligible to
designate Opportunity Zones.
OPPORTUNITY ZONES

16. As of December 22, 2017, state governors or territory chief
executives had 90 days to designate their state or territories'
Opportunity Zones. A maximum of 25 percent of a state or
territories' low-income census tracts may be designated as
Opportunity Zones.
OPPORTUNITY ZONES

17. Opportunity Funds are Treasury-certified investment vehicles, that
deploy capital into Opportunity Zones. Opportunity Funds are
required to hold at least 90 percent of their assets in an
Opportunity Zone, or face penalty for each month it fails to meet the
investment requirement. The penalty equals the amount of the
investment shortfall, multiplied by the underpayment rate as
defined in Section 6621(a)(2) of the Internal Revenue Code.
WHAT ARE OPPORTUNITY FUNDS?
OPPORTUNITY ZONE FUNDS

18. LEADERSHIP TEAM
Leslie A. Anderson
President and CEO
landerson@njra.us
609.278.5171
Darryl Godfrey Kim Avant-Babb
Chief Operating Officer Chief Strategy Officer
dgodfrey@njra.us kavant-babb@njra.us
609.278.5175 609.278.5174