PATTERSON — Paterson residents may soon have a new way to invest directly in neighborhood projects and small businesses if state legislation creating a local ownership pilot program advances. The proposal, introduced by Sen. Benjie Wimberly and Assemblyman Kenyatta Stewart, would allow individuals to buy stakes in approved development efforts with investments as low as $50 and as much as $500 over a three-year pilot.
How the pilot would work
Under the bill, the program — called the Community Investment and Local Ownership Pilot Program — would be housed at the New Jersey Economic Development Authority. The state would appropriate $30 million to launch the initiative and would match eligible resident contributions dollar-for-dollar. Organizers envision the program funding a range of local projects, including affordable housing, community revitalization, and investments in small businesses and enterprises owned by minorities, women and veterans.
- Individual investment range: $50–$500
- State match: 1:1 for eligible contributions
- Pilot duration: 3 years
- Initial appropriation: $30 million
- Number of participating municipalities: 6 (two each in northern, central and southern New Jersey)
“Paterson is the type of community that we believe could benefit from a program like this,”
said Habib Kader, chief of staff to Assemblyman Stewart, in a response to questions from TAPinto Paterson.
Selection and eligibility
The legislation does not guarantee Paterson a slot in the pilot. The NJEDA, in consultation with the state Division of Local Government Services, would select six municipalities — two in each region of the state — using criteria set out in the bill. The selection factors listed include household income, poverty and unemployment rates, population changes and a municipality’s Municipal Revitalization Index distress score.
Passaic County, where Paterson sits, is among seven counties eligible for the two northern New Jersey pilot municipalities. Stewart’s office confirmed that while Passaic County is eligible, the NJEDA will make the final municipal selections based on the established criteria.
Potential local effects and unanswered questions
Supporters of the concept say the program could expand local ownership and give residents a tangible stake in neighborhood improvements. For Paterson — which faces long-standing economic challenges in parts of the city — access to a mechanism that channels community capital into affordable housing and small-business investment could shift how development benefits are distributed.
But the measure leaves substantive details to rule-making and NJEDA decisions. The legislation outlines the framework — contribution limits, matching funds, and broad eligible project categories — but does not specify how returns to resident investors would be structured, how projects would be vetted, or what legal protections investors would receive. It also does not guarantee Paterson’s inclusion among the six pilot municipalities.
| Feature | Detail |
|---|---|
| Investment minimum | $50 |
| Investment maximum | $500 |
| State match | Dollar-for-dollar |
| Program length | 3 years |
| Launch funding | $30 million |
| Municipal slots | 6 (2 north, 2 central, 2 south) |
City officials and community groups in Paterson have not yet released formal statements about the proposal. If Paterson is selected, residents would be able to contribute to NJEDA-approved projects within the city limits, including investments aimed at revitalizing neighborhoods and supporting local enterprises.
The pilot’s reliance on public matching funds and a low entry threshold — down to $50 — is intended to broaden participation beyond traditional investors and allow residents with modest means to share in potential economic upside. How the NJEDA will balance community benefit with financial oversight and the risks to small-dollar investors will be key questions as the bill moves through the legislative process.
As the legislation advances, Paterson residents and local leaders can expect additional debate over which municipalities are chosen, which project types are prioritized, and how the program’s benefits are measured. The NJEDA’s eventual rules and selection process will determine whether Paterson secures a place in the pilot and, if so, how residents can participate.
