N.J. Admin. Code § 5:80-33.8

Current through Register Vol. 56, No. 9, May 6, 2024

Section 5:80-33.8 - Awards from the Reserve

(a) Projects that need credits because of technical errors or severe hardship can submit a reapplication for credits from the Reserve. The Reserve may also be used to fund cost overruns for unforeseen circumstances beyond the developer's control where NJHMFA determines that a project's financial feasibility is jeopardized. Any credits not dedicated to the Family, Age-Friendly Senior, and Supportive Housing Cycles shall be deposited into the Reserve. Awards of credits from the Reserve are subject to availability and NJHMFA's evaluation of the request.

1. Hardship requests for additional credits from the Reserve are limited to $ 150,000 per project. Total development costs shall not exceed $ 317,625 per unit for buildings of one to four residential stories, $ 346,500 per unit for buildings with five or six residential stories, and $ 375,375 per unit for buildings with over six residential stories, excluding capitalized permanent reserves, non-basis-eligible off-site improvements, up to $ 10,000 per unit and $ 400,000 maximum for an integrated community center or social service space, or up to $ 10,000 per unit, and $ 800,000 maximum for a standalone community or social service building (subject to third-party cost certification), required deferred developer fee, if any, and either up to $ 15,000 per unit for adaptive reuse projects or up to $ 7,500 per unit for projects achieving the Passive House standard. Hardship requests must be documented to the satisfaction of NJHMFA and must demonstrate the existence of an unforeseen emergency where the completion of the project is jeopardized without an award of additional low-income housing tax credits. No more than one hardship award shall be approved with respect to a given project. Hardship applications to the Reserve are accepted on an ongoing basis until September 30. To apply to the Reserve for a hardship reservation of additional credit, applicants must follow the procedures at N.J.A.C. 5:80-33.13(a)1.

2. Credits in the Family Cycle shall be set aside for up to two eligible family projects located within a Targeted Urban Municipality with up to a 55-percent affordability component. Mixed-Income Reserve projects are eligible for a maximum annual allocation of credits for all projects of $ 2,000,000. The project's market study at N.J.A.C. 5:80-33.12(c)1 ii shall clearly demonstrate that the tax credit units provide a minimum 20 percent market advantage compared to comparable market-rate units. Projects shall achieve a minimum of 65 percent of the maximum score under the ranking criteria established pursuant to N.J.A.C. 5:80-33.15. Should multiple projects be deemed eligible at the same Tax Credit Committee meeting, credits shall be awarded in accordance with the tiebreaker at N.J.A.C. 5:80-33.19(a)1. Credits not awarded pursuant to this paragraph shall be deposited for use in the Family Cycle at N.J.A.C. 5:80-33.4.

3. Notwithstanding the provisions at (a)2 above, for the duration of the time period in which NJHMFA is accepting project applications to award the $ 305,000,000 in Federal Coronavirus State Fiscal Recovery Fund dollars appropriated to the Affordable Housing Production Fund pursuant to P.L. 2022, c. 49, or until December 31, 2025, whichever comes sooner, the percentage of credits set aside for eligible family projects located within a TUM with up to a 55-percent affordability component shall be 60 percent.

4. The Tax Credit Committee, which is composed of those individuals designated at N.J.A.C. 5:80-33.22(a), may, at its sole discretion, award any one additional nine-percent application from either the Family, Age-Friendly Senior, or Supportive Housing Cycle that would otherwise not rank high enough for funding. The Tax Credit Committee shall publish a written explanation of the basis upon which any award is made. Awards from this reserve are entirely discretionary and the Tax Credit Committee may choose not to utilize this reserve in any given funding round. To be eligible for such an award, an application must satisfy the following criteria:

i. Have been scored by NJHMFA as being within five points, including any applicable cure points, of the lowest-scoring awarded project in its respective cycle;

ii. Meet the criteria set forth at N.J.A.C. 5:80-33.12;

iii. Not be "substantially incomplete"; and

iv. Satisfy at least one of the following:

(1) Represent a regional or geographic location that has received limited affordable housing resources;

(2) Leverage substantial financial resources from the Federal government or from other non-NJHMFA funding sources;

(3) Affirmatively further the purposes and policies of the Fair Housing Act (Title VIII of the Civil Rights Act of 1968) or contribute to a municipal fair share housing development plan;

(4) Respond to an urgent housing need or an underserved population; or

(5) Meet other critical State housing policy directives, goals, or priorities.

N.J. Admin. Code § 5:80-33.8

Amended by 49 N.J.R. 435(a), effective 3/6/2017

Amended by 51 N.J.R. 833(a), effective 6/3/2019

Amended by 56 N.J.R. 343(b), effective 3/4/2024