N.J. Admin. Code § 5:43-2.3

Current through Register Vol. 57, No. 1, January 6, 2025

Section 5:43-2.3 - Subsidy

(a) The Department will provide funding to a maximum of $ 6 million per project. The methodology for determining the maximum Balanced Housing subsidy is set forth in N.J.A.C. 5:43-3.3 through 3.12 for each type of project.

(b) The Commissioner may, at his or her discretion, award less than the maximum subsidy, structure the assistance as a secured loan, with or without interest, or provide additional assistance for short-term financing, including construction and/or bridge loans, if needed, to ensure project feasibility.

1. The Department reserves the right, based on the size and design of the units, to restrict the size of a household that will occupy the unit and to provide funding in accordance with the reduced household size.

2. The Department may, at its discretion, reduce the maximum subsidy if an analysis of the construction design and specifications determines that essential function can be preserved at a lower cost.

(c) The Balanced Housing subsidy shall not exceed the gap between all other capital sources, including, but not limited to, permanent debt and any monetary incentive or rebate received for participation in the New Jersey Board of Utilities, Clean Energy Program, and the actual project cost, or, for new units, the maximum eligible project cost as determined in subsection N.J.A.C. 5:43-2.4(a).

1. Applicants shall demonstrate that other subsidies have been maximized, including, but not limited to, the Federal Home Loan Bank Board's Affordable Housing Program, local development fees and regional contribution agreements.

(d) Funding provided in accordance with this chapter may not be combined with HOME CHDO or HOME Investment Partnerships Program subsidy ( 24 CFR Part 92), provided by the Department.

(e) Balanced Housing funding shall not be used as a substitute for private financing where the latter is feasible and attainable.

(f) The developer must submit a detailed estimate of project funding and project costs and, upon completion of construction and prior to project close out, a certification by a certified public accountant of actual project funding and project costs. The Department reserves the right to conduct an independent audit of final project costs.

N.J. Admin. Code § 5:43-2.3

New Rule R.1992 d.144, effective 4/6/1992.
See: 23 N.J.R. 1075(a), 24 N.J.R. 1385(a).
Amended by R.1996 d.226, effective 5/20/1996.
See: 28 N.J.R. 6(a), 28 N.J.R. 2573(a).
Rewrote section.
Repeal and New Rule, R.1998 d.438, effective 9/8/1998.
See: 30 N.J.R. 1880(a), 30 N.J.R. 3239(b).
Section was "Distribution of funds".
Amended by R.2002 d.325, effective 10/7/2002.
See: 33 N.J.R. 3261(a), 34 N.J.R. 3500(a).
Rewrote the section.
Repeal and New Rule, R.2007 d.202, effective 7/2/2007.
See: 38 N.J.R. 3711(a), 39 N.J.R. 2517(a).
Section was "Cost criteria".