New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 33 - LOW INCOME HOUSING TAX CREDIT QUALIFIED ALLOCATION PLAN › Section 5:80-33.32 - Compliance monitoring

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The owners of all projects with an allocation
				of low-income housing tax credits must contact NJHMFA's compliance monitoring
				section before the project is placed in service and prior to rent up. In addition,
				the owner must submit to NJHMFA a copy of the completed IRS Form 8609 (Part I
				completed by NJHMFA and Part II completed by the owner) within 30 days of completion
				of Part II of the IRS Form 8609 and the filing thereof with the Internal Revenue
				Service. This form contains information necessary for NJHMFA to monitor the project
				for compliance. Failure to submit a copy of the completed IRS Form 8609 within the
				specified time frame may constitute noncompliance and may be reported by NJHMFA to
				the IRS.
(b) The owner of a tax credit
				project shall agree to submit to NJHMFA copies of any correspondence, notice, or
				other document the owner receives from the Internal Revenue Service regarding
				compliance or noncompliance issues, audits, or other forms of communication
				regarding their low-income tax credit project(s).
(c) Owners shall submit to NJHMFA on an annual
				basis a copy of the project's most recent audited financial statements, including a
				detailed income and expense schedule and vacancy rate calculation by January
				31.
(d) Owners/agents are required to
				keep records for each qualified low-income building in the project that show for
				each year of the compliance period the following information:
1. The total number of residential rental units in
				the building, including the number of bedrooms and the size in square feet of each
				residential rental unit;
2. The
				percentage of residential rental units in the building that are low-income
				units;
3. The rent charged on each
				residential rental unit in the building, including any utility allowances;
4. The number of occupants and the number of
				full-time students in each low-income household;
5. The low-income unit vacancies in the building
				and information that shows when and to whom the next available units (whether market
				rate or low-income) were rented;
6. The
				annual income certification of each low-income household;
7. Documentation to support each low-income
				tenant's income (that is, income verification from third parties such as employers
				or agencies paying unemployment compensation). Tenant income is calculated in a
				manner consistent with the determination of annual income pursuant to Section 8 of
				the United States Housing Act of 1937, not in accordance with the determination of
				gross income for Federal income tax liability. In the case of a tenant receiving
				housing assistance payments pursuant to Section 8, the documentation requirement is
				satisfied if the public housing authority provides a statement to the building owner
				declaring that the tenant's income does not exceed the applicable income limit
				pursuant to Section 42(g) of the Code. For 100-percent tax-credit properties, an
				initial certification shall be required at move-in, followed by a re-certification
				on the one-year anniversary of move-in. Re-certification shall no longer be required
				in subsequent years, provided the property continues to operate as 100-percent
				affordable. While a resident shall still be required to complete the Tenant Income
				Certification and other forms on an annual basis, third-party verification of income
				shall no longer be required;
8. The
				eligible basis and qualified basis of the building at the end of the first year of
				the credit period; and
9. The character
				and use of the non-residential portion of the building included in the building's
				eligible basis under Section 42(d) of the Code (that is, tenant facilities that are
				available on a comparable basis to all tenants and for which no separate fee is
				charged for use of the facilities, or facilities reasonably required by the
				project).