Neighborhood Preservation Program (NPP) Guidelines, Schemes and Mind Maps of Business

DCA's neighborhood programs are designed to acknowledge the crucial role neighborhoods play as the center of community for New Jersey's citizens, ...

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2022/2023

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Neighborhood Preservation Program (NPP)
Guidelines
PROGRAM OVERVIEW
DCA’s neighborhood programs are designed to acknowledge the crucial role neighborhoods play
as the center of community for New Jersey’s citizens, and the opportunity they offer to serve as a
springboard to build a stronger, more equitable New Jersey. DCA’s programs target
neighborhoods at a variety of income levels, with a significant emphasis on distressed
neighborhoods where DCA’s resources can leverage momentum already existing in the
neighborhood to make a true and lasting impact. The neighborhood programs focus on three
common strategies to frame efforts toward revitalization:
Creating sustainable partnerships to catalyze change
Building on neighborhood assets to revitalize communities
Maximizing impact
The Neighborhood Preservation Program (NPP) plays a key role in implementing New Jersey’s
neighborhood revitalization efforts by strengthening the ability of municipalities to plan and
implement strategies to help declining neighborhoods become thriving neighborhoods; building
partnerships between state and local governments, private businesses, and residents; and
encouraging private investment to drive increased economic opportunities and quality of life in
the state’s vulnerable communities. The goals of the new program are to:
Serve as a catalyst for economic development
Serve as a platform for the coordination of efforts by the State, municipalities, residents,
businesses and other stakeholders to help declining neighborhoods become thriving ones
The program will focus on threatened but viable neighborhoods those neighborhoods that will
be able to use the program’s assistance to arrest decline and leverage their existing assets to spur
economic development. The program will also concentrate on neighborhoods with the potential
for mixed use development, to encourage small business job creation and invite greater business
and community investment in economic development.
NPP also provides the opportunity to serve as a platform for a variety of state investments in
neighborhoods. By working with other state agencies and stakeholders, DCA can lead the
coordination of these investments toward a common goal of building strong and vibrant
neighborhoods. To maximize the impact of the NPP investment, as well as other investments,
municipalities will be required to show commitment of resources from the neighborhood and the
municipality, as well as support from community organizations and residents. NPP also
encourages applications from municipalities that are participating in other DCA, state, or federal
programs, including designation as an Neighborhood Revitalization Tax Credit (NRTC)
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Neighborhood Preservation Program (NPP) Guidelines PROGRAM OVERVIEW DCA’s neighborhood programs are designed to acknowledge the crucial role neighborhoods play as the center of community for New Jersey’s citizens, and the opportunity they offer to serve as a springboard to build a stronger, more equitable New Jersey. DCA’s programs target neighborhoods at a variety of income levels, with a significant emphasis on distressed neighborhoods where DCA’s resources can leverage momentum already existing in the neighborhood to make a true and lasting impact. The neighborhood programs focus on three common strategies to frame efforts toward revitalization:

  • Creating sustainable partnerships to catalyze change
  • Building on neighborhood assets to revitalize communities
  • Maximizing impact The Neighborhood Preservation Program (NPP) plays a key role in implementing New Jersey’s neighborhood revitalization efforts by strengthening the ability of municipalities to plan and implement strategies to help declining neighborhoods become thriving neighborhoods; building partnerships between state and local governments, private businesses, and residents; and encouraging private investment to drive increased economic opportunities and quality of life in the state’s vulnerable communities. The goals of the new program are to:
  • Serve as a catalyst for economic development
  • Serve as a platform for the coordination of efforts by the State, municipalities, residents, businesses and other stakeholders to help declining neighborhoods become thriving ones The program will focus on threatened but viable neighborhoods – those neighborhoods that will be able to use the program’s assistance to arrest decline and leverage their existing assets to spur economic development. The program will also concentrate on neighborhoods with the potential for mixed use development, to encourage small business job creation and invite greater business and community investment in economic development. NPP also provides the opportunity to serve as a platform for a variety of state investments in neighborhoods. By working with other state agencies and stakeholders, DCA can lead the coordination of these investments toward a common goal of building strong and vibrant neighborhoods. To maximize the impact of the NPP investment, as well as other investments, municipalities will be required to show commitment of resources from the neighborhood and the municipality, as well as support from community organizations and residents. NPP also encourages applications from municipalities that are participating in other DCA, state, or federal programs, including designation as an Neighborhood Revitalization Tax Credit (NRTC)

neighborhood, an Opportunity Zone, a Main Street NJ district, a Transit Village, or other relevant designations. As envisioned in the Maintenance of Viable Neighborhoods Act, funds can be used for a wide array of activities including:

  • Intensive code enforcement in deteriorating areas
  • Financial assistance with respect to rehabilitation of privately owned properties
  • Rehabilitation or clearance, demolition and removal of buildings and improvements
  • Provision of appropriate public services in the neighborhood
  • Acquisition of blighted properties for rehabilitation
  • Sale, lease, or donation of rehabilitated blighted properties
  • Planning of neighborhood programs
  • Administration of NPP activities Funding Eligible municipalities may apply for NPP funding by submitting an application to the Notice of Funding Availability (NOFA) in the DCA SAGE system. Successful applicants will receive an initial award of $125,000 to be expended over an 18-month grant period, including six months for development of a Neighborhood Preservation Plan and 12 months for program implementation. Applicants must commit to a 20% match from non-State sources in their application. Grantees may receive subsequent NPP funding of $100,000 (for up to four subsequent years), as determined annually by DCA based on performance. Eligible Applicants Eligible applicants must be New Jersey political subdivisions (municipalities). Eligible municipalities must be between the 64th and 98th percentiles on the Municipal Revitalization Index (MRI) and have neighborhoods that meet the following eligible neighborhood criteria (listed below). Eligible Municipality Criteria NPP was created to specifically address identified needs in municipalities with neighborhoods that are distressed and that have the capacity to use NPP funds to demonstrate improved economic development and quality of life within a five-year period, as defined below:
  1. Municipalities must rank between the 64th and 98th percentiles on the Municipal Revitalization Index.

  1. Presence of Mixed-Use Development: The neighborhood proposed in the application currently contains mixed-use commercial/residential development and has the potential for further development. Applicants must provide the address and photo of at least two mixed-use properties within the neighborhood. A mixed-use property must include a commercial or retail use on the first floor and a residential use on at least one upper floor. 3 ) Neighborhood Size: The neighborhood must have distinctive boundaries, and be of manageable size, so that positive effects may be observed within a five-year period. The land area of the neighborhood must be no less than ¼ square mile and no greater than 2 square miles. Application Process Each municipality can receive an award for only one neighborhood. Municipalities can apply for multiple neighborhoods, but only one neighborhood will be funded per funding cycle. Applicants must submit all required materials by the application deadline to be considered. A successful application will be valid for an initial 18-month grant period. Upon review at the end of the grant period by DCA, and demonstration of timely achievement of NPP plan goals, the grantee will be notified of approval of subsequent annual funding on a year by year basis (up to four subsequent years). Funds will only be awarded to grantees that are in good standing and compliance with all program, statutory, and regulatory requirements. Application Scoring Criteria Applications will be scored based on the following criteria, on a scale of 100 points:
  • Existing State Support or Investment (35 points): Evidence of existing state support or investment to be leveraged by the NPP funds, which could include but is not limited to designation of the neighborhood proposed in the application as: ▪ NRTC neighborhood ▪ Opportunity Zone ▪ Main Street NJ district ▪ Improvement District ▪ Urban Enterprise Zone ▪ Downtown Business Improvement Zone ▪ Transit Village ▪ Recipient of Local Planning Services assistance ▪ Area in Need of Redevelopment ▪ Commitment of support through the county’s or municipality’s CDBG program. ▪ Other official municipal designation
  • Existing Local Capacity to Support Neighborhood Reinvestment (25 of 100 points)

o Status as a Main Street NJ district or improvement district ( 10 points) o Whether the municipality has secured any state or federal grant for community or economic development in the last 3 years, as well as grant performance ( 15 points)

  • Municipal Commitment (20 points) o Evidence of financial or staff resource commitment to the neighborhood
  • Support and Involvement of Local Stakeholders (10 points) o Commitment by local businesses, lending institutions, community organizations, residents, municipal officials, and/or other stakeholders to participate in the NPP planning process
  • Assessment of Proposed Neighborhood (10 points) o Description of proposed neighborhoods, assessed needs, and how NPP funds will address those needs Application Requirements Applicants will be required to provide the following information in SAGE: Applicant Contact Information
  • Applicant Name
  • Name, address, email and phone for the primary contact for the application Neighborhood Information
  • Narrative assessment of neighborhood needs and how NPP funding will assist in addressing those needs
  • List of 2010 census tract(s) or block group(s) that best correspond to the neighborhood boundaries
  • Neighborhood land area in square miles
  • A map or maps with boundaries for the targeted neighborhood o The neighborhood boundaries must include whole parcels, boundaries that cut across parcels are not permitted o The map must include parks, community gardens, theaters, places of worship, schools, hospitals, community centers, and other relevant community assets o The map must include zoning, districts, classification, community facilities, street names, problem properties, public open space, and census tract boundaries
  • Photographs of the targeted area o Address and photo of at least two mixed-use properties within the neighborhood

o Commitment of municipal funds for a physical project (such as a new park, community garden, infrastructure, community center, etc.) in the neighborhood within the last three years o Commitment of state, federal, or non-profit grant funds by the municipality for a physical project in the neighborhood within the last three years o Designation of any municipal employee within the last three years to do any of the following: ▪ Develop or contribute to a neighborhood or redevelopment plan ▪ Update or assist with updating a neighborhood or redevelopment plan ▪ Implement or assist with implementing a neighborhood or redevelopment plan ▪ Collect and/or analyze neighborhood data to advance a community or economic development project ▪ Coordinate local government offices and agencies to support a neighborhood community or economic development project Funding Information

  • Description of minimum of 20% match including the source of funds.
  • All sources and amounts of funding committed to the project, including those used to meet the required local match Staffing Information
  • Organizational chart showing NPP coordinator, position and name of municipal official supervising NPP coordinator, and chain of command between the NPP coordinator and the mayor

PROGRAM IMPLEMENTATION PHASE I - Planning The Planning Phase occurs during the first six months of the grant period and involves all activities leading up to the grantee’s submission of the initial NPP Plan to DCA. The NPP Plan represents a comprehensive strategy for neighborhood revitalization, based on data used to identify neighborhood physical, social and economic needs and stakeholder input and feedback, and will cover up to five years of NPP implementation. DCA staff will provide grantee training on needs assessment and development of the NPP Plan. The Planning Process Through the planning process, municipalities will use demographic and economic data, along with resident and other stakeholder feedback, to analyze neighborhood needs and design a plan that includes neighborhood revitalization strategies and identifies resources to implement those strategies. The needs assessment may include issues of housing affordability and economic development, as well as encompassing broader issues of neighborhood health, education, recreation or transportation. The planning process must include an assessment of neighborhood conditions, analysis of surveys completed by residents and stakeholders, and the development of measurable goals, outcomes and activities designed to address needs identified through the assessment process. The NPP Plan must be developed by a Neighborhood Planning Committee composed of residents, municipal representatives, lending institution representatives, local chamber of commerce representatives, local non-profit organizations, local businesses and other stakeholders. The committee will be responsible for providing the resources, input and expertise needed to develop an effective NPP Plan. To ensure the timely development of a comprehensive NPP Plan, as well as implementation of the Plan once developed, the Grantee will designate or hire, within the first six weeks of the program, one person as full-time NPP Program Coordinator, with the advice and consent of the Division of Housing and Community Resources. The coordinator is responsible for recruiting and chairing the Neighborhood Planning Committee, overseeing development of the NPP Plan, administering the program, and ensuring that all contract activities are carried out on schedule. “Full-time” is defined as the municipality’s regular workweek with 100% of the employee’s workweek committed to NPP. Up to $20,000 of the annual NPP award may be used to support the salary of the local coordinator. By the end of the first six months of the grant period, the grantee must submit the NPP Plan to DCA for approval. Once approved, the grantee must adopt the NPP Plan by resolution and submit the resolution to DCA for approval of funding.


CLOSEOUT PROCESS At the conclusion of the five-year NPP Plan period (or at the conclusion of the last year in which DCA approves annual NPP funding, if sooner), the Grantee must meet the final reporting and closeout requirements, to determine that all administrative responsibilities and all required activities of the NPP Plan have been satisfactorily completed by the grantee. Final reporting requirements must include, but are not limited to:

  1. A modified version of the neighborhood assessment conducted at the start of the planning process, including relevant neighborhood data and responses to community opinion surveys (re-administered to at least 25% of those households surveyed at the program’s inception)
  2. A report on the program’s achievements in fulfilling the goals and activities included in the NPP Plan Grants can be terminated when:
  3. The grant term expires and the grant money has been spent;
  4. The Grantee has failed to carry out the terms of the contract, in DCA’s determination;
  5. DCA determined that all objectives have been reached. SUCCEEDING THE INITIAL NPP PLAN NPP grantees can reapply for a subsequent five-year funding cycle in the last year of funding if they demonstrate substantial fulfillment of goals and activities in the NPP Plan, and if, at the time of application, at least 35% of the Year 5 grant has been expended. Grantees meeting these criteria may respond to DCA’s application for continued funding and must include an updated NPP Plan for review and approval as part of the application, as well as a report on the grantee’s performance in implementing the initial NPP Plan and its impact on the NPP neighborhood.