N.J. Admin. Code § 5:80-33.27

Current through Register Vol. 56, No. 18, September 16, 2024

Section 5:80-33.27 - Placed in service needs analysis

(a) Pursuant to Section 42(m)(2) of the Code, NJHMFA shall conduct the last of its required needs analysis evaluations at the time the project is placed in service. The analysis shall be based on the project cost certification of an independent C.P.A. and the permanent financing sources (see N.J.A.C. 5:80-33.28). If the amount of the tax credit request is not needed for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the credit period, the amount of the tax credit shall be reduced to the needed amount.

(b) The determination of whether the amount requested is needed for financial feasibility and continued viability of the project shall include an examination as to whether there have been increases or decreases in project costs, other funding sources, or rental subsidies that would result in a higher allocation than needed. If NJHMFA has a reasonable basis for concluding the equity factor submitted by the applicant is inconsistent with market conditions, NJHMFA reserves the right to adjust the equity factor in its underwriting. The Code requires that NJHMFA reduce the credit amount based upon need; however, this does not mean that NJHMFA will jeopardize the long-term financial feasibility and viability of the project by arbitrarily taking back credits. For example, if the equity market improved so that projects were able to get better pricing from investors, NJHMFA would not necessarily reduce the credit on those projects that use the "excess" credits to cover cost overruns or provide betterments in the projects such as upgrading the security system, landscaping, provision of appliances, such as washers, and the like. NJHMFA shall not allow these additional funds to be used to increase the developer fee over that shown on the application.

(c) For each needs analysis, a Sponsor Certification shall be submitted. Any substantive changes to the project's financing plan or costs shall be explained in detail and may cause the project to be reconsidered by NJHMFA.

N.J. Admin. Code § 5:80-33.27

Amended by R.1997 d.284, effective 7/7/1997.
See: 29 New Jersey Register 1441(a), 29 New Jersey Register 2818(a).
Deleted "eligible basis amount" following "increase the developer fee".
Recodified from N.J.A.C. 5:80-33.24 and amended by R.1998 d.279, effective 6/1/1998.
See: 30 New Jersey Register 1132(a), 30 New Jersey Register 1978(a).
In (a), changed N.J.A.C. reference; and in (b), added a new second sentence. Former N.J.A.C. 5:80-33.29, Returning credits, was recodified to N.J.A.C. 5:80-33.34.
Recodified from N.J.A.C. 5:80-33.30 and amended by R.1999 d.120, effective 4/5/1999.
See: 31 New Jersey Register 122(a), 31 New Jersey Register 860(a).
In (a), rewrote the second sentence. Former N.J.A.C. 5:80-33.28, Reservations, allocations and binding commitments, recodified to N.J.A.C. 5:80-33.26.
Amended by R.2000 d.132, effective 3/20/2000.
See: 32 New Jersey Register 191(a), 32 New Jersey Register 1065(a).
Recodified from N.J.A.C. 5:80-33.28 and amended by R.2001 d.170, effective 5/21/2001.
See: 33 New Jersey Register 932(a), 33 New Jersey Register 1573(b).
In (a), changed N.J.A.C. reference. Former N.J.A.C. 5:80-33.29, Project cost certification, recodified to N.J.A.C. 5:80-33.30.
Recodified from N.J.A.C. 5:80-33.29 and amended by R.2003 d. 300, effective 7/21/2003.
See: 35 New Jersey Register 1616(a), 35 New Jersey Register 3298(b).
In (a), amended N.J.A.C. reference. Former N.J.A.C. 5:80-33.27, Allocation/issuance fee schedule, recodified to N.J.A.C. 5:80-33.25.

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