Recovery Bill Authorizes More than $126 Million in Bond Authority for Central New Jersey Governments

Washington, DC – June 12, 2009 – (RealEstateRama) – Rep. Rush Holt (NJ-12) today hailed the announcement by the U.S. Treasury Department that it is making available Recovery Zone Bonds to help communities obtain capital to fund economic development projects, rebuild infrastructure, maintain public services, and assist families in need.

“This is another way the economic recovery bill is helping rebuild communities throughout Central New Jersey,” Holt said. “This recession is the result of an economic ‘perfect storm’ that has reduced the amount of available capital. By providing bond authority to communities, we can foster much needed economic development and allow local governments to meet the needs of their residents.”

Created by the American Recovery and Reinvestment Act, this Treasury Department program will provide $10 billion for Recovery Zone Economic Development Bond and $15 billion for Recovery Zone Facility Bonds. New Jersey is receiving $627.7 million for the two programs.

Hunterdon County has been allocated $3,566,000 for Recovery Zone Economic Development Bonds and $5,349,000 for Recovery Zone Facility Bonds.

Mercer County has been allocated $6,850,000 for Recovery Zone Economic Development Bonds and $10,275,000 for Recovery Zone Facility Bonds.

Middlesex County has been allocated $26,342,000 for Recovery Zone Economic Development Bonds and $39,513,000 for Recovery Zone Facility Bonds.

Monmouth County has been allocated $20,775,000 for Recovery Zone Economic Development Bonds and $31,162,000 for Recovery Zone Facility Bonds.

Somerset County has been allocated $11,319,000 for Recovery Zone Economic Development Bonds and $16,978,000 for Recovery Zone Facility Bonds.

Recovery Zone Economic Development Bonds are a type of taxable Build America Bonds that would give state and local governments a 45 percent reimbursement on the interest paid to finance various economic development projects, including job training and education programs. Recovery Zone Facility Bonds are traditional tax-exempt private activity bonds used by private businesses in designated recovery zones to finance a broad range of depreciable capital projects.