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WASHINGTON-U.S. Rep. Bill Pascrell, Jr. (D-NJ-08) today announced that the City of Paterson will receive almost $8 million in new economic recovery bonding authority that have been made available through the American Recovery and Reinvestment Act. Statewide, New Jersey cities and counties will receive $627 million. Passaic County (excluding Paterson) is slated to receive $25 million.
As a former Mayor and member of the House Ways and Means Committee, Pascrell pushed heavily for additional infrastructure investment bonding opportunities in the Recovery Act. Pascrell stated, “I am pleased with how the Recovery Act is investing in the New Jersey communities hit hardest by the economic downturn. These bonds will help lift the most distressed communities by giving local governments and private developers new opportunities to finance capital improvements projects at lower rates. New construction projects will put people back to work in our communities improving our communities.”
The Recovery Act included $25 billion for two new types of Recovery Zone Bonds – $10 billion for Recovery Zone Economic Development Bonds and $15 billion for Recovery Zone Facility Bonds.
The City of Paterson has been awarded $3,197,000 in Recovery Zone Economic Development Bonds as part of $251 million awarded to cities and counties across the state. These bonds are another type of taxable Build America Bond that allow state and local governments to obtain lower borrowing costs through a new direct federal payment subsidy, for 45 percent of the interest, to finance a broad range of qualified economic development projects, such as job training and educational programs.
In addition, the City of Paterson was awarded $4,796,000 in Recovery Zone Facility Bonds as part of $376 million awarded to cities and counties throughout the state. These traditional tax-exempt private activity bonds may be used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects.
“I will keep a close eye on how these new federally subsidized bond opportunities are used to create jobs and stimulate the local economy in Paterson and around the county,” stated Pascrell. “This funding is nothing to sneeze at and represents a grand opportunity for our local governments to really start digging out of this economic mess.”
To make this program as easy as possible for state and local governments to administer and use, the Treasury Department has also detailed the bond volume cap allocations at the local level for counties and large cities.
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