The Treasury Department said this week the state is seeking a manager for a $20 million investment fund tasked with financing projects, such as affordable housing, infrastructure and early childhood education centers, in underserved communities.
Treasury issued a “notice of investment opportunity” May 21 for a fund manager for the Social Impact Investment Fund (SIIF), which will be used to leverage additional funding from outside investors and provide below-market capital to projects that further the SIIF’s goals.
The fund was seeded with a $20 million appropriation in the 2024 state budget. The fund manager shall work directly or through various Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) to provide loans to New Jersey-based developers and nonprofits and with the New Jersey Infrastructure Bank (I-Bank) to fund credit enhancement on I-Bank investments in infrastructure projects in vulnerable communities.
A steering committee comprised of Treasury representatives and relevant state agencies will provide guidance to the fund manager.
The Notice of Investment Opportunity can be viewed online here.
Questions regarding the notice are due on Tuesday, June 11 by 5 p.m. EST. The deadline to respond to the notice is Friday, July 19, by 3 p.m. EST.
“This is a significant step towards the creation of a socially motivated, public financial tool that will help invest in communities throughout New Jersey that have historically been underserved and underinvested,” Gov. Phil Murphy said. “With Treasury’s guidance, the selection of a fund manager will set the wheels in motion to bring critical capital to these communities, laying the groundwork for a public banking model in New Jersey.”
