James Greenberg – Project Development/Infrastructure/P3

August 7, 2020 by Brad A. Molotsky

COVID-19: NJ makes $25M CARES funds available for certain Small Landlords – applications open on August 19th

Today, August 7th, Governor Murphy announced the Small Landlord Emergency Grant (SLEG) Program, which will reimburse small residential rental property owners for lost rent revenue due to COVID-19 between April and July 2020. The program is structured to pass the benefit on to their tenants by requiring foregiveness of certain outstanding back rent and late fees. The rent foregiveness is in exchange for landlords receiving these funds from NJ.

The goal of the program is to create some level of stability between landlords and impacted tenants in order to enable housing to continue to be proided to the applicable tenants.

The Program will reimburse small landlords for rent payments that were missed or reduced in April, May, June, and/or July 2020. Only properties with low-to-moderate rent levels are eligible (see Eligibility Criteria below for more information).　

Please note: grantees must pass the benefit on to their tenants by forgiving outstanding back rent and late fees for COVID-impacted units for the April-July 2020 period.

Eligibility:

To be eligible for the SLEG Program, the applicant and the applicant’s rental property have to meet the eligibility criteria.　

The applicant must:

– Be the Primary Property Owner of a residential rental property (i.e., not condominium or cooperative) property in New Jersey and registered as such with New Jersey Department of Community Affairs’ (NJDCA) on the Bureau of Housing Inspection Registration Inspection Management System (RIMS) database. You must be registered as of July 17, 2020.
– NOT be a government entity or public housing authority.　　
– Be current on all state and local tax obligations.

The applicant’s property must:

– Contain at least 3 and no more than 10 total housing units.　
– NOT be a seasonal or vacation rental property.　　
– Have a fire inspection certificate, current as of March 9, 2020, from the Local Enforcement Agency responsible for fire safety.　
– Contain at least one non-vacant COVID-impacted unit with a net rent deficit between April and July 2020. This means that the total rent due from the tenant in this four-month period exceeds the rent the landlord received during this period.
– Rents charged to COVID-impacted unit(s) are no greater than the maximum rent thresholds listed in the table below. If a unit has an above-threshold rent for its bedroom size, that unit is ineligible for assistance

Maximum Rent Thresholds by Bedroom Size
County of Rental Property	Studio	1-Bedroom	2-Bedroom	3-Bedroom	4-Bedroom	5-Bedroom
Atlantic County	1,182	1,266	1,518	1,754	1,956	2,159
Bergen County	1,504	1,611	1,932	2,232	2,490	2,748
Burlington County	1,354	1,450	1,740	2,010	2,242	2,474
Camden County	1,354	1,450	1,740	2,010	2,242	2,474
Cape May County	1,202	1,288	1,546	1,785	1,992	2,197
Cumberland County	1,028	1,102	1,322	1,527	1,704	1,880
Essex County	1,496	1,603	1,924	2,222	2,478	2,735
Gloucester County	1,354	1,450	1,740	2,010	2,242	2,474
Hudson County	1,382	1,480	1,776	2,051	2,288	2,525
Hunterdon County	1,674	1,793	2,152	2,486	2,774	3,060
Mercer County	1,564	1,676	2,012	2,324	2,592	2,861
Middlesex County	1,674	1,793	2,152	2,486	2,774	3,060
Monmouth County	1,532	1,642	1,970	2,276	2,540	2,802
Morris County	1,496	1,603	1,924	2,222	2,478	2,735
Ocean County	1,532	1,642	1,970	2,276	2,540	2,802
Passaic County	1,504	1,611	1,932	2,232	2,490	2,748
Salem County	1,354	1,450	1,740	2,010	2,242	2,474
Somerset County	1,674	1,793	2,152	2,486	2,774	3,060
Sussex County	1,496	1,603	1,924	2,222	2,478	2,735
Union County	1,496	1,603	1,924	2,222	2,478	2,735
Warren County	1,448	1,552	1,862	2,151	2,400	2,648

Grant Award Amounts:

NJHMFA has been allocated a total of $25 million in federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding to administer the SLEG Program. There are no preset minimum or maximum award amounts for this program. The grant award amount will be calculated on the basis of the number of eligible, COVID-impacted units in the property and the net rent deficit for each eligible unit for the four-month period between April and July 2020.　

To ensure that the SLEG Program serves “mom-and-pop” property owners vulnerable to financial stress during COVID-19, at least one-third of program funds will be reserved for those applicants who are registered in the NJDCA RIMS database as individual or family owners.

Application Process:

Applicants will be required to create an account on the SLEG application platform using a valid email address.

After creating an account, the applicant may create and submit an application for their rental property. If the applicant has multiple eligible properties, they can submit a separate application for each property under their single applicant account. Each application requires several pieces of information, listed on the Application Checklist.

Review Process:

An annotated version of the application will be available for preview beginning on August 10. The application portal will launch at 9 AM on Wednesday, August 19 and stay open until 1 PM on Wednesday, August 26. At this point, all applications received will be sorted randomly by computer and reviewed in that random order. Applications will be reviewed for eligibility and completeness. NJHMFA will use the documentation provided to verify information entered into the web form and will alert the applicant of any issues with documentation to give them an opportunity to cure. Applicants will have 5 business days to cure outstanding documentation.

Applicants will be notified through the application portal whether their application has been selected for award, placed on a waitlist, or denied. All applicants that are selected for award will have 5 business days to upload their banking details, a W-9, and any additional information required to the application portal for subsequent electronic payment.

After payment is disbursed, tenants residing in units that have been assisted by the program will receive a letter from NJHMFA alerting them that their landlord has received a SLEG grant.

For more information on the program please click on this link which will take you to NJHMFA’s site outlining the program – https://njhousing.gov/rentals/sleg/

Please note that the application period begins August 19 and ends August 26.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

If you have any questions about this post, please contact Brad A. Molotsky, Elizabeth Mincer or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

May 6, 2020June 11, 2020 by Brad A. Molotsky

COVID-19: NJ extends Public Health Emergency another 30 days to June 5, 2020

NJ Governor Phil Murphy issued Executive Order 138 (“EO 138”), which extends the Public Health Emergency declared on March 9, 2020 under Executive Order 103 for another 30 days until June 5, 2020. Under the Emergency Health Powers Act, a declared public health emergency expires after 30 days unless renewed. According to this newly issued EO 138, all previously entered Executive Orders remain “in full force and effect”.

The conclusions stated in EO 138 indicate that although New Jersey’s social distancing measures have helped to slow the increase of COVID-19 cases and deaths in the state, the total number of cases and deaths in New Jersey has continued to rise and would rise at an even more precipitous rate absent these important measures.

Governor Murphy emphasized the continued importance of social distancing as the best available tool given the lack of an available vaccine or another effective therapy.

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Paul Josephson, Jimmy Greenberg or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

April 29, 2020April 29, 2020 by Brad A. Molotsky

COVID-19: NJ names 21 Member COVID Taskforce

NJ has officially announced the 21 members of its COVID Taskforce. According to Governor Murphy, the NJ taskforce “is composed of experts in a multitude of fields — from academia to industry to the arts to labor, and so much more,” he said. “They bring passion and vision to the table. And, if there’s anything we need right now, it’s both.”

The group will include 16 members and 5 ex-officio members from the Murphy administration. It will be co-chaired by Merck Chair and CEO Ken Frazier and former Princeton President Shirley Tilghman.

“They will address core economic issues, but also issues which directly impact economic health — notably public health, workforce issues and transportation,” he said. “And, they will seek ways to sustain our recovery by maximizing future federal support, especially for our small business sector.”

The members are:

Co-chairs:

Ken Frazier, Merck chairman and CEO;

Shirley Tilghman, president emerita of Princeton University and professor of molecular biology & public policy.

Sitting members:

Ben Bernanke, former two-term chair of the Federal Reserve and distinguished fellow in residence with the Economic Studies Program at the Brookings Institution;

Rich Besser, CEO and president of the Robert Wood Johnson Foundation and former acting director of the Centers for Disease Control and Prevention;
Evelyn McGee Colbert, founding board member and president of Montclair Film, and vice president of Spartina Productions;

Anthony Coscia, chairman of Amtrak, partner and executive committee member of Windels Marx Lane & Mittendorf, and chairman of Suez North America Inc.;

Jessica Gonzalez, founder and CEO of InCharged and founder of Experience VendX.

Jonathan Holloway, incoming Rutgers University president;

Lisa Jackson, vice president of environment, policy and social initiatives at Apple Inc. and former administrator of the U.S. Environmental Protection Agency under President Barack Obama;

Jeh Johnson, former secretary of homeland security under Obama, and partner at the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP;

Charlie Lowrey, chairman and CEO of Prudential Financial Inc.;

Denise Morrison, founder of Denise Morrison & Associates, senior adviser for PSP Partners and former CEO and president of Campbell Soup Co.;

Bill Rodgers, professor of public policy and chief economist at the Heldrich Center for Workforce Development at Rutgers University and former chief economist at the U.S. Department of Labor;

Neera Tanden, president of the Center for American Progress and CEO of the Center for American Progress Action Fund;

The Rev. Dr. Regena Thomas, director of the Human Rights and Community Relations Department of the American Federation of Teachers and former New Jersey secretary of state;

Richard Trumka, national president of the AFL-CIO.

Ex-officio members:

Sheila Oliver, lieutenant governor;
Judith Persichilli, health commissioner;
George Helmy, chief of staff;
Matt Platkin, chief counsel;
Kathleen Frangione, chief policy adviser

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Paul Josephson, Elizabeth Mincer, James Greenberg or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

April 27, 2020 by Brad A. Molotsky

COVID-19: NJ Announces 6-Point Plan and Methodology for ReOpening the State – “The Road Back”

Gov. Murphy announces NJ’s 6-point reopening plan called “The Road Back: Restoring Economic Health Through Public Health.”

The Governor also reiterated that his “Stay-at-Home” executive order will remain in effect until further notice.” The plan also calls for a measurable drop in cases over a 14-day period before a reopen happens.

Murphy’s press conference focused on:

• The Shore – hoping “we have some semblance of norm” at the Jersey Shore this summer, beginning on Memorial Day weekend, but “I just don’t envision being in tight spaces without real restrictions on capacity and social distancing.”

• Workplaces – the first workplaces and venues to reopen will be the ones where the state has a “high confidence” that social distancing can take place.
• Bigger Gatherings – concerts, he said, are not going to happen “anytime soon.”

• Parks – he hopes “sooner or later” that parks can reopen, saying he may agree with the argument that they’re essential “for mental health and other reasons.”

• Schools – he indicated that NJ is “still a number of weeks away” from a full reopening, but that there is “a chance” schools could reopen by May 15.

The 6 key principles (based in science and facts) will guide “the process for lifting restrictions and restoring New Jersey’s economic health through public health.”

“Restarting New Jersey’s economy and returning people to work will be done methodically, strategically, and responsibly,” he said.

Principle 1: Demonstrate Sustained Reductions in New COVID-19 Cases and Hospitalizations:

• The state must show a 14-day trend lines showing appreciable and sustained drop in cases, hospitalizations, and other metrics; and
• Hospitals must step down from functioning under crisis standards of care.

Principle 2: Expand Testing Capacity:

• The state must at least double current diagnostic testing capacity;
• The state must prioritize testing for health care workers, essential personnel, and vulnerable populations;
• The state must provide a flexible testing plan accessible to all residents;
• The state must expand partnerships with institutions of higher education, private-sector labs, and the federal government; and
• The state must ensure that those who test positive are linked to a health care provider.

Principle 3: Implement Robust Contact Tracing:

• The state must recruit and deploy an army of personnel who will identify and follow-up with contacts. The state Health Department has said it’s going to need to hire anywhere from 15 to 81 contact tracers per 100,000 people, or 1,500 to 7,000 people statewide;
• The state must leverage technological data and innovative solutions to increase efficiency; and
• The state must coordinate the approach of local and state health officials, which will have a coordinated county/regional component.

Principle 4: Secure Safe Places and Resources for Isolation and Quarantine:

• To the greatest extent possible, the state must provide individuals who do test positive in the future with a safe and free place to isolate and protect others from COVID-19; and
• The state must ensure that quarantined contacts are provided supportive services, if needed.

Principle 5: Execute a Responsible Economic Restart:

• The state must create the “Governor’s Restart and Recovery Commission” to advise on the process and recommend responsible and equitable decisions;
• The state must plan for a methodical and strategic return to work based on level of disease transmission risk and essential classification;
• The state must continue social distancing measures where feasible and appropriate; and
• The state must leverage any available federal funds and programs to support health care, individual, and small business recoveries.

Principle 6: Ensure New Jersey’s Resiliency:

• The state must learn from the lessons of COVID-19 and prepare for the possibility of a resurgence;
• The state must ensure hospitals, health care systems, and other health delivery facilities have inventories of personal protective equipment and ventilators;
• The state must build its own state personal protective equipment and ventilator stockpile; and
• The state must create a playbook for future administrations for the next pandemic.

For Further Information:

If you have any questions about this post, please contact Brad A. Molotsky, Paul Josephson, Elizabeth Mincer, James Greenberg or the attorney in the firm with whom you are regularly in contact.

Be well and stay safe!

April 8, 2020June 11, 2020 by Brad A. Molotsky

COVID-19 – NJ updates its Executive Order – “Non-Essential” Construction Activity Shut Down and Retail Limitations – effective April 8th – 8PM

Governor Murphy announced on Wednesday, April 8, 2020, an Executive Order (“EO”) that will impact business operations across the State of New Jersey. A copy of the Executive Order can be found at: https://nj.gov/infobank/eo/056murphy/pdf/EO-122.pdf

New Guidelines for “Non-Essential Construction“:

Per the EO, all non-essential construction operations in NJ must be shut down at 8 PM on 4-10-2020. Below is the definition for “essential construction” that may remain operational. The EO also requires construction projects that remain active to adopt special social distancing and cleanliness standards.

Projects necessary for the delivery of health care services, including but not limited to hospitals, other health care facilities, and pharmaceutical manufacturing facilities;
Transportation projects, including roads, bridges, and mass transit facilities or physical infrastructure, including work done at airports or seaports;
Utility projects, including those necessary for energy and electricity production and transmission, and any decommissioning of facilities used for electricity generation;
Residential projects that are exclusively designated as affordable housing;
Projects involving pre-K-12 schools, including but not limited to projects in Schools Development Authority districts, and projects involving higher education facilities;
Projects already underway involving individual single-family homes, or an individual apartment unit where an individual already resides, with a construction crew of 5 or fewer individuals. This includes additions to single-family homes such as solar panels;
Projects already underway involving a residential unit for which a tenant or buyer has already entered into a legally binding agreement to occupy the unit by a certain date, and construction is necessary to ensure the unit’s availability by that date;
Projects involving facilities at which any one or more of the following takes place: the manufacture, distribution, storage, or servicing of goods or products that are sold by online retail businesses or essential retail businesses, as defined by Executive Order No. 107 (2020) and subsequent Administrative Orders adopted pursuant to that Order;
Projects involving data centers or facilities that are critical to a business’s ability to function;
Projects necessary for the delivery of essential social services, including homeless shelters;
Any project necessary to support law enforcement agencies or first responder units in their response to the COVID-19 emergency;
Any project that is ordered or contracted for by Federal, State, county, or municipal government, or any project that must be completed to meet a deadline established by the Federal government;
Any work on a non-essential construction project that is required to physically secure the site of the project, ensure the structural integrity of any buildings on the site, abate any hazards that would exist on the site if the construction were to remain in its current condition, remediate a site, or otherwise ensure that the site and any buildings therein are appropriately protected and safe during the suspension of the project; and
Any emergency repairs necessary to ensure the health and safety of residents.

New Guidelines for Essential Retail Stores:

All essential retail must indefinitely limit the number of customers in their stores to 50 percent of their approved capacity.Customers and employees must wear face coverings. Stores must provide special shopping hours for high-risk individuals, erect physical barriers between customers and cashiers and baggers where practicable, and regularly sanitize areas used by their employees.

New Guidelines for Warehouses and Manufacturing Facilities:

The order will also put greater protections in place for the workers in warehouses and in manufacturing and will required social distancing to be practiced to its fullest extent.

About Duane Morris:

Duane Morris has created a COVID-19 Strategy Team to help organizations plan, respond to and address this fast-moving situation. Please see our COVID-19 site or contact your Duane Morris attorney for more information. Prior Alerts on the topic are available on the team’s webpage.

For Further Information:

If you have any questions about this Alert, please contact Brad A. Molotsky, Paul Josephson, Elizabeth Mincer, James Greenberg, or any member of our COVID-19 Strategy Team or the attorney in the firm with whom you are regularly in contact.

April 4, 2020April 6, 2020 by Brad A. Molotsky

NJ: NJEDA Announces April 13th – Application Launch Date for Loan Program for Small Businesses impacted by COVID-19

The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Loan Program on Monday, April 13, 2020 at 9:00 am. A link to the program application will be posted on the State’s COVID-19 Business Information Hub. To provide business owners the opportunity to prepare to apply for the loan, a .pdf version of the application will become available on Monday, April 6^th. The loan program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

A copy of the loan application will be available Monday, April 6, 2020, to provide business owners with the opportunity to prepare. Completed applications will be considered on a first come, first serve rolling basis. To see whether you might qualify for this program, use the NJ COVID-19 Business Support Eligibility Wizard.

The Small Business Emergency Assistance Loan program is designed to provide a direct loan of up to $100,000 to NJ-based small businesses and non-profits organizations that have been in existence for at least one-year and has less than $5 million in annual revenue. These businesses much have been negatively impacted by the COVID-19 outbreak (including, but not limited to: reduction of business hours, complete closure of business, at least a 20% decline in revenue, employees unable to work, required to close by government, or disruption of supply chain).

Your organization is eligible for the Small Business Emergency Assistance Loan Program if you…

Have a physical commercial location in the State of NJ. Home-based businesses are not eligible for this program. A home-based business is a business operated out of a residential property where commercial activity is not zoned to take place.
Have been in existence for at least one year
Have less than $5M annual revenue
Can show a global debt service coverage ratio of 1.00 (as of December 31st, 2019)
Are able to demonstrate negative impact related to COVID-19 on or after March 9th, 2020
Are registered to do business in the State of NJ
Must certify that the company is in good tax standing with the State
Are in good standing with the Department of Labor and Workforce Development, with all decisions of good standing at the discretion of the Commissioner of the Department of Labor and Workforce Development
Are able to provide a CEO certification that the firm will make its best-effort to not lay off employees or will re-hire employees as soon as possible
Non-profit organizations are eligible for this program; eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7)

Types of businesses not eligible:

Related to gambling or gaming activities
Related to the purveyance of “adult” (i.e., pornographic, lewd, prurient, obscene) activities, services, products or materials (including nude or semi-nude performances or the sale of sexual aids or devices)
Auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sale
Traveling merchant
Christmas tree sales or other outdoor storage
Any other activity constituting a nuisance
Illegal under the laws of the State of New Jersey

This program is structured specifically for entities facing economic challenges due to COVID-19 and provides low-cost and flexible terms, such as:

10-year term and amortization
0% interest rate (years 1-5), NJEDA’s prevailing interest rate floor (capped at 3.0% years 6-10)
Deferred repayments for 12 months

There are no fees associated with the Small Business Emergency Loan Program for the first five years of the loan, including application fees, and then standard modification fees will apply.

About Duane Morris:

For Further Information:

If you have any questions about this Alert, please contact Brad A. Molotsky, James Greenberg, Dan Mita or any member of our COVID-19 Strategy Team or the attorney in the firm with whom you are regularly in contact.

April 2, 2020June 11, 2020 by Brad A. Molotsky

NJ – NJEDA – Small Business Emergency Assistance GRANT Program – opens Friday, 4-3-20 at 9 am

The New Jersey Economic Development Authority (NJEDA) will launch the application for its Small Business Emergency Assistance Grant Program tomorrow, Friday, April 3, 2020 at 9:00 am. If you are thinking of applying, a link to the grant program application will be posted on the State’s COVID-19 Business Information Hub. The grant program is part of a package of initiatives announced last week to support businesses and workers facing economic hardship due to the outbreak of the novel coronavirus COVID-19.

This Grant program is a $5M program that will provide grants up to $5,000 to small businesses in retail, arts entertainment, recreation, accommodation, food service, repair, maintenance, personal and laundry services.

Eligibility Guidelines for Small Business Emergency Assistance Grant Program:

Businesses applying for the Small Business Emergency Assistance Grant Program must provide:

· A contact who is authorized to speak on behalf of the company.

· Basic information about the company:

· Registered legal name and “Doing Business As” name (available here: https://www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName;

· Federal Employer Identification Number (EIN);

· Year your company was established;

· Full-time employees as of December 31, 2019 and Part-Time Employees as of December 31, 2019.

· Industry as defined by your NAICS code (available here: https://www.naics.com/search/).

· Answers to the State’s basic debarment questions (See .pdf of application here: https://cv.business.nj.gov).

· Certification that the business:

· Is not a home-based business;

· Is not a prohibited business;

· Has been impacted by the COVID-19 outbreak;

· Has a material financial need that cannot be overcome without the grant funds;

· Will make a best effort not to lay off any additional employees and re-hire any whom have already been laid off;

· The NJEDA may check your entries against other State sources of data.

NJEDA has developed an online Grant Award Size Estimate Calculator to help eligible businesses understand what their potential grant size might be.

About Duane Morris:

For Further Information:

If you have any questions about this Alert, please contact Brad A. Molotsky or James Greenberg or any member of the COVID-19 Strategy Team or the attorney in the firm with whom you are regularly in contact and we can direct your inquiry to the appropriate place.

Be Well. Stay Safe. Stay Vigilant.