The New Jersey Social Impact Investment Fund (SIIF), administered by Nonprofit Finance Fund (NFF), makes crucial investments in affordable housing, early childhood education, and infrastructure across the Garden State. Established by the New Jersey Department of the Treasury in 2023, SIIF deploys below-market rate loans and other financial tools to advance socially beneficial projects and programs by leveraging public and private investments. The $20 million fund is managed by NFF, working in partnership with State agencies to identify qualifying projects and deploy the State’s investment.
SIIF provides financing for projects across three investment areas:
Affordable Housing Predevelopment Loan Program
Predevelopment loans for emerging developers seeking to serve as the lead developer on their first Low Income Housing Tax Credit-supported development project to improve equity in the affordable housing space. The program offers affordable loans of up to $1,000,000 with flexible terms.
Project partner: New Jersey Housing and Mortgage Finance Agency
Early Childcare Facility Loan Program
Facility loans that support the operations, construction, and maintenance of early childhood education facilities for children age 0-5 in financially impaired municipalities. Loans will support early childhood education providers with construction, renovation, and expansion of licensed early childhood facilities. The program offers affordable loans of up to $500,000 with flexible terms.
Project partner: New Jersey Economic Development Authority
Infrastructure Credit Enhancement Program
Credit enhancement for qualifying municipalities working with developers to access below market financing for the water and/or transportation infrastructure components of their housing redevelopment projects.
The New Jersey Infrastructure Bank is a State authority that utilizes federal, State and private funds to make loans for public infrastructure projects. Redevelopers can work with disadvantaged communities to access I-Bank loans supported by a credit enhancement from the SIIF. Credit enhancements are capped at $3,000,000 that could support conduit loans of up to $15,000,000. Savings on I-Bank loans for such projects typically exceed 50% of the total loan amount.
Project partner: New Jersey Infrastructure Bank
Questions?
Email [email protected].
Eligibility Requirements
Affordable Housing Predevelopment Loan Program
Developers must meet the following criteria:
- Have had majority equity participation in no less than 2 other multifamily development projects with 4 or greater units, comprising at least 25 total units.
- Are applying for LIHTC as the majority developer for the first time.
- Meet the New Jersey Housing and Mortgage Finance Agency (NJHMFA) statutory, regulatory, and programmatic guideline requirements, including but not limited to the NJHMFA standards for site control for the proposed project.
- Agree to engage a tax credit consultant with prior LIHTC multifamily experience in New Jersey.
- Have completed or agree to complete an approved Technical Assistance or Training Program to support their development efforts in the proposed project, unless they can demonstrate to the Agency’s satisfaction that their prior education and experience with LIHTC projects is sufficient that they would not benefit from the program’s curriculum. Approved technical assistance and training programs will be shared during the intake call.
Early Childcare Facility Loan Program
- Operate or be licensed to operate a childcare center by the New Jersey Department of Children and Families (NJCDF).
- Provide full-time care to children ages 0 to 5.
- May be for-profit businesses or non-profit organizations.
- May own or lease space.
Infrastructure Credit Enhancement Program
Program overview:
- Eligible program participants are municipalities with low investment grade ratings which are currently the City of Atlantic City, the City of Newark, the City of Paterson, the City of Salem, the City of Trenton, the City of Union, the Township of Irvington, and the Township of Weehawken. Beneficiaries are designated redevelopers partnering with one of these municipalities on a housing redevelopment project wherein the municipality is financing the project pursuant to the New Jersey Redevelopment and Housing Law.
- Program participants participating in the Infrastructure Credit Enhancement Program must be municipalities; these program participants in turn enter into project redevelopment agreements, and collateral security agreements, with relevant services provider(s), redeveloper(s) and guarantor(s), as applicable.
Nonprofit Finance Fund® (NFF®) is a nonprofit lender, consultant, and advocate. Since 1980, we’ve helped organizations access the money and resources they need to realize their communities’ aspirations. Alongside others, we’re working to build community wealth and well-being and put affordable housing, essential services, quality jobs, and excellent education within reach of more people. As a community development financial institution (CDFI) NFF manages a portfolio of over $339 million. Since 1980, we have provided over $1.4 billion in financing and access to additional capital in support of over $5.7 billion in projects for nearly 1,000 organizations nationwide. To learn more, visit nff.org.
