Published: January 10, 2013
By Star Ledger Editorial Board

Distressed urban neighborhoods, even in the best of times, face an uphill struggle with crime, vacant storefronts, junk-strewn lots and abandoned housing. When budgets are tight, as they are now, a slow decline can accelerate, costing both the state and taxpayers more in the long run.

That’s why expanding the Neighborhood Revitalization Tax Credit is so important. Over the past 10 years, the tax credit has successfully lured private investment to impoverished neighborhoods. Corporations get a break on taxes; communities get a chance to build schools, parks, a walk-in clinic or to demolish buildings that are vacant, dangerous and beyond repair.

A bill to raise the cap on tax credits from $10 million to $15 million passed both the state Senate and Assembly last month. Gov. Chris Christie should sign the bill so this worthy program can bring private investment into more communities in need.

Not just any hard-up neighborhood can participate: The state requires the community to have its own comprehensive plan for development, with an established nonprofit organization playing a leading role.

Patrick Morrissy, founder and executive director of HANDS, a nonprofit community development agency, said the tax credit allowed HANDS to buy and redevelop vacant industrial and commercial buildings in the Valley neighborhood in Orange, helping to develop small businesses — restaurants, art galleries, even a hydroponic greenhouse — and creating affordable live/work spaces for artists.

The tax credit delivers a lot of bang for the buck. About $48 million in tax credits have been invested by 24 corporations since the program was approved in 2002, according to the Housing and Community Development Network of New Jersey, creating 1,265 homes, more than 800 jobs and generating nearly $4 million in property taxes. The network, which crafted the original tax credit bill, estimates another 400 jobs are in the pipeline. Crucial partnerships are created, too.

“There’s a one-to-one relationship with a business entity that goes beyond dollars,” said Arnold Cohen, the network’s policy coordinator. “People in corporations are donating their time and building a relationship with the community.”

Few investments deliver on their promise. This one does, and that is why Gov. Chris Christie should sign the bill on his desk.