N.J. Admin. Code § 5:80-33.4

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

Section 5:80-33.4 - Family Cycle

(a) Non-age-restricted developments may apply to this cycle. Not less than 50 percent of the total credits awarded in the Family, Age-Friendly Senior, and Supportive Housing Cycles will be available in the Family Cycle, and the maximum annual allocation of credits to any one development competing in this cycle is $ 2,000,000. 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 stand-alone 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. For adaptive reuse projects, NJHMFA will perform a site inspection to assess the amenability of conversion to multifamily housing. Additionally, the development, design, and construction teams must demonstrate successful experience with the established methodologies required to produce an adaptive reuse project. If multiple tranches of this cycle are awarded, all set-asides for this cycle will be applicable to each tranche. Minimum rehab projects are not eligible to apply in this cycle. Unless market area demographics and/or financial feasibility demonstrate otherwise, all non-age-restricted projects (except preservation and historic rehabilitation projects) must adhere to the following minimum bedroom distributions: the combined number of efficiency and one-bedroom tax credit units shall be no greater than 20.00 percent of the tax credit units; at least 30.00 percent of the tax credit units shall be two-bedroom units; and at least 20.00 percent of the tax credit units shall be three-bedroom units. There are two set-asides in the Family Cycle:

1. Mixed-Income set-aside: The first reservation of credits from the Family Cycle shall be awarded to one project that contains up to 55 percent affordable units and is located outside of a Targeted Urban Municipality. Up to $ 30,000 in credits per tax-credit-eligible unit are available and the maximum annual allocation of credits is $ 2,000,000. The limits on total development costs do not apply to this set-aside. The project's market study as provided for at N.J.A.C. 5:80-33.12(c)1 ii shall clearly demonstrate that the tax credit units in the project provide a minimum 20-percent market advantage compared to comparable market-rate units. The project shall achieve a minimum of 65 percent of the maximum score under the ranking criteria established at N.J.A.C. 5:80-33.15, including the maximum points stipulated at N.J.A.C. 5:80-33.15(a)1 i, regarding extended affordability; 5:80-33.15(a)11i, regarding site selection; 5:80-33.15(a)14ii, regarding proximity to public transportation; and 5:80-33.15(a)14iii, regarding high-performing schools. 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. If, because of lack of demand, the mixed-income set-aside is not utilized, the credits therein shall be released into the Family Cycle.

2. Preservation set-aside: The second and third reservations of credits from the Family Cycle shall be given to the two highest-ranking eligible applications from preservation set-aside projects. The maximum annual allocation of credits to developments competing in this set-aside is $ 1,400,000. If, because of lack of demand, the preservation set-aside is not utilized, the credits in the preservation set-aside shall be released into the Family Cycle.

(b) Projects that receive negative points pursuant to N.J.A.C. 5:80-33.15(a)15, 17, 18, 19, or 20 shall not be eligible to compete in any set-aside.

(c) Reservations shall first be awarded to the highest-ranking eligible projects qualifying for the mixed-income and preservation set-asides. Thereafter, reservations shall be awarded to the highest-ranking eligible projects under the scoring and ranking criteria at N.J.A.C. 5:80-33.15. To ensure equitable distribution if there are both excess demand and multiple ranking eligible applications from a single municipality, NJHMFA shall fund no more than two projects per year from the same municipality with a population of less than 100,000 and no more than three projects per year from the same municipality with a population of 100,000 or more based on the most recent American Community Survey Table DP05 (ACS 5-Year Demographic and Housing Estimates), U.S. Census Bureau (however, projects funded through the Supportive Housing Cycle will not be included in this count). To ensure equitable distribution if there are both excess demand and multiple ranking eligible applications from a single developer, NJHMFA shall fund no more than three projects per year from the same developer/general partner/managing member. Funding of projects shall be prioritized in the following manner: the highest-ranking eligible project(s) in the Family Cycle, followed by the Age-Friendly Senior Cycle. NJHMFA will accept only one application per developer/general partner/managing member per municipality in the Family Cycle.

(d) 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 (AHPF) pursuant to P.L. 2022, c. 49, or until December 31, 2025, whichever comes sooner, the following shall apply:

1. Approximately 60 percent of the credits (inclusive of all set-asides and all credits awarded under the Mixed-Income Reserve established at N.J.A.C. 5:80-33.8(a)3) shall be made available to projects in Targeted Urban Municipalities (TUMs), seeking to maintain a lower constraint of not less than 50 percent.

2. The remaining credits shall be allocated to projects in the remainder of the State (non-TUM areas), provided NJHMFA receives a sufficient number of eligible applications from non-TUM areas to result in these approximate allocation percentages.

3. As the dollar amounts of certain awards may skew percentages, thus making it difficult or impossible to maintain strict allocation percentages, NJHMFA reserves the right in its sole discretion to allocate awards among projects in TUMs and non-TUM areas to best attain the objective set forth in this subsection.

(e) Following the termination of the time period in which NJHMFA accepts project applications to award the $ 305,000,000 in Federal "Coronavirus State Fiscal Recovery Fund" dollars appropriated to the AHPF, or after December 31, 2025, whichever comes sooner, the following shall apply:

1. Approximately 40 percent of the credits (inclusive of all set-asides and all credits awarded under the Mixed-Income Reserve established at N.J.A.C. 5:80-33.8(a)3) shall be made available to projects in TUMs, seeking to maintain a lower constraint of not less than 35 percent.

N.J. Admin. Code § 5:80-33.4

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