N.J. Admin. Code § 5:80-20.5

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:80-20.5 - Recertification periods and procedures; annual compliance audit

(a) Family income shall be recertified on an annual basis for families occupying units that are assisted by HUD subsidies, such as Section 8 and 236.

(b) Family income shall be recertified annually or at such times and to the extent required pursuant to the Internal Revenue Code (IRC) for:

1. A family occupying a unit within a housing project financed under former Section 103(b)(4) of the IRC where such unit is restricted to families of low- and moderate-income as defined in Section 103(b)(12)(C) of the IRC;

2. A family occupying a unit that is a low-income unit in a housing project financed under current Section 142 of the IRC (or any other applicable provision of the IRC as it relates to tax-exempt housing bonds); or

3. A family occupying a unit that is a low-income unit pursuant to Section 42 of the IRC.

(c) Family income shall be recertified at least every three years but not more than once each year, for all other families not included within (a) or (b) above.

(d) Housing sponsors shall notify each family in writing, not more than 100 days and not less than 91 days prior to expiration of a family's lease, that they must recertify family income. Such notification shall include, but is not necessarily limited to:

1. A statement that families must recertify within 30 days of the notice;

2. A list of the documentation required for recertification;

3. A statement that families who fail to recertify income may be subject to provisions set forth inN.J.A.C. 5:80-20.6. The statement must include a description of the provisions atN.J.A.C. 5:80-20.6;

4. A statement that after recertification, families whose income is in excess of the Federal or Agency maximum income limit may be subject to provisions set forth in 5:80-20.7, such statement including a description of such provisions.

(e) After families have recertified, housing sponsors shall calculate the family's gross aggregate family income. If there will be an adjustment in HUD subsidy or imposition of a surcharge as provided byN.J.A.C. 5:80-20.8, housing sponsors shall provide families with notice at least 30 days prior to the expiration of the lease. If requested by families, housing sponsors shall provide an explanation of how they calculated the family's income and arrived at the adjustment of subsidy or imposition of a surcharge.

(f) The housing sponsor must file with the Agency copies of the recertifications obtained by the housing sponsor during the previous calendar year within 45 days following the end of each calendar year, or at such other times as may be required by the IRC or IRS regulations, if applicable. If the housing sponsor fails to timely submit the documentation required pursuant to this section, the housing sponsor shall pay to the Agency an administrative fee of $ 200.00 for each certification for which a notice of noncompliance has been issued. Such fee shall be in addition to, and not in lieu of, any default remedies available to the Agency pursuant to its loan and regulatory documents governing the project.

(g) Failure of the housing sponsor to comply with the time requirements in (d) and (e) above shall not relieve families of their obligation to complete their recertification within 30 days of receiving notice to recertify.

(h) Housing sponsors shall provide a written acknowledgment indicating the documents submitted, if requested at the time of submission.

(i) On an annual basis, and in addition to the other requirements of this subchapter, housing sponsors of at least 33.33 percent of all Agency-financed housing projects subject to this subchapter shall submit to the Agency for compliance review, the following information for a minimum of 20 percent of all income-restricted units, 20 percent of all units assisted by HUD subsidies, and 20 percent of all market-rate units, as applicable (projects and units shall be identified by the Agency):

1. A copy of the most recent family income certification;

2. The documentation the housing sponsor has received to support the certification; and

3. The rent record/roll.

N.J. Admin. Code § 5:80-20.5

Amended by 49 N.J.R. 3423(c), effective 10/16/2017

Amended by 51 N.J.R. 1421(a), effective 9/3/2019