New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 29 - INVESTMENT OF HOUSING PROJECT FUNDS › Section 5:80-29.1 - Permitted investments

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Housing sponsors
				whose Agency mortgages are insured by HUD may, with prior Agency approval, invest
				available funds, including escrow funds, in taxable or tax-free investments
				permitted by HUD. To the extent that investment of specific project funds is not
				governed by HUD, the requirements in this subchapter as to projects subject to (b)
				below shall apply.
(b) Housing sponsors
				of all other projects, with prior Agency approval, may invest available funds,
				including escrow funds, in the following:
1. State
				of New Jersey general obligation bonds with a final maturity or average duration not
				to exceed seven years at the time of initial investment;
2. New Jersey Housing and Mortgage Finance Agency
				bonds, which shall be rated A or higher and with a final maturity or average
				duration not to exceed seven years at the time of initial investment;
3. Bonds of municipalities, instrumentalities or
				agencies of the State of New Jersey, which shall be rated A or higher and with a
				final maturity or average duration not to exceed seven years at the time of initial
				investment, and whose rating of A or higher has been confirmed within the past 12
				months;
4. National municipal bond funds
				and New Jersey bond funds, each of which at the time of initial investment at least
				80 percent of the bonds within the fund are rated A or higher or the funds' average
				credit quality rating is in the AA/Aa category or higher and whose ratings have been
				confirmed within the past 12 months. Additionally, the funds' average maturity or
				average duration at the time of initial investment shall not exceed seven
				years;
5. Interest-bearing instruments
				which are AAA/Aaa rated. These instruments are limited to U.S. Treasury Notes, U.S.
				Treasury Bills, U.S. Treasury Bonds, Federal National Mortgage Association direct
				debt obligations, Government National Mortgage Association direct debt obligations,
				and Federal Home Loan Mortgage Corporation direct debt obligations, each with a
				final maturity not to exceed seven years at the time of initial investment.
				Investments in mortgage pools of the aforementioned United States agencies are not
				permitted. Bond funds consisting of the instruments specified in this paragraph are
				limited to an average maturity or average duration not to exceed seven years at the
				time of initial investment;
6.
				Certificates of deposit with a final maturity not to exceed seven years at the time
				of initial investment, provided such certificates of deposit are insured in full by
				the Federal Deposit Insurance Corporation (FDIC);
7. Money market accounts and other bank accounts,
				provided such accounts are insured in full by the FDIC;
8. For projects that received Agency financing
				prior to August 15, 2011 and had project funds invested therein as of such date, the
				State of New Jersey Cash Management Fund or other similar common trust funds of
				which the New Jersey State Treasurer is custodian;
9. Securities and Exchange Commission-registered
				money market funds as defined by Rule 2a-7 under the Investment Company Act of 1940,
				17
				CFR §
											270.2a-7, with a minimum $ 1 billion
				average asset size for the previous 12 months; and
10. Any other investment as permitted under (a)
				above.