N.J. Admin. Code § 5:43-3.4

Current through Register Vol. 56, No. 21, November 4, 2024

Section 5:43-3.4 - Rental projects

(a) The Balanced Housing Program may provide assistance to eligible applicants to provide new rental housing units for occupancy by low and moderate income households. Eligible activities shall include new construction, reconstruction and the conversion of non-residential structures.

1. The buy-down of new units which are not deed restricted in order to make them affordable is also eligible.

(b) The maximum allowable subsidy for a rental project shall be the amount needed to ensure project feasibility in accordance with 5:43-2.3.

(c) Applicants may combine a rental project with a homeownership project.

(d) Applicants for rental housing projects must apply to the New Jersey Housing and Mortgage Finance Agency for permanent financing.

(e) Applicants may apply directly to the New Jersey Housing and Mortgage Finance Agency (Agency) for a combination of LIHTCs, permanent and/or construction financing and Balanced Housing assistance. For such applications, the Agency will act as the Department's designee with respect to the Balanced Housing assistance provided, hereinafter referred to as "Home Express" loans.

1. Any loan agreement entered into for Home Express funds shall incorporate contractual guarantees and procedures to ensure that any unit of housing provided for low and moderate income households shall continue to be occupied by, and affordable to, low and moderate-income households for at least 20 years.

2. Projects receiving Home Express loans are exempt from the Uniform Housing Affordability Controls, N.J.A.C. 5:80-26, including affordability averages and bedroom distribution requirements.

3. Projects receiving Home Express loans shall be exempt from 5:43-2.4(a), provided however that the Agency will require applicants to substantiate and justify project costs.

4. Except as noted in (e)5 and 6 below, the maximum Home Express loan for a project shall be $ 40,000 per unit for projects receiving competitive cycle tax credits or $ 50,000 for projects receiving non-competitive cycle tax credits.

5. Additional Home Express loan amounts may be approved for projects providing new rental units affordable at or below a 30 percent range of affordability.

6. Home Express loans may be increased by up to $ 2.00 per square foot to cover the costs of automatic fire suppression systems that are not required by the local municipal building code but are required by 5:43-2.4(m).

N.J. Admin. Code § 5:43-3.4

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.1995 d.339, effective 6/19/1995.
See: 27 N.J.R. 1508(a), 27 N.J.R. 2385(a).
Rewrote (c), which previously had limited the maximum allowable subsidy to that determined in Appendix C.
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.
Amended by R.1998 d.438, effective 9/8/1998.
See: 30 N.J.R. 1880(a), 30 N.J.R. 3239(b).
In (a), substituted a reference to reconstruction for a reference to substantial rehabilitation in the last sentence.
Amended by R.2002 d.325, effective 10/7/2002.
See: 33 N.J.R. 3261(a), 34 N.J.R. 3500(a).
Rewrote (b).
Amended by R.2007 d.202, effective 7/2/2007.
See: 38 N.J.R. 3711(a), 39 N.J.R. 2517(a).
In the introductory paragraph of (a), substituted second occurrence of "to" for "for use by for-profit or not-for-profit housing sponsors who"; rewrote (b); and added (d) and (e).