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 5:80-33.1 - Introduction

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Section 42 of the Internal Revenue Code of
				1986 (Code), 26 U.S.C. §
										42, establishes a low-income housing tax credit
				that may be applied against the Federal income tax of persons or associations who or
				which have invested in certain buildings providing housing for families of
				low-income. As the housing credit agency for the State of New Jersey, the New Jersey
				Housing and Mortgage Finance Agency (NJHMFA) allocates these credits to qualified
				taxpayers and thereafter monitors their compliance with Section 42 of the Code. The
				rules in this subchapter set forth the standards and procedures used by NJHMFA to
				perform its allocation and monitoring responsibilities and this subchapter
				represents the qualified allocation plan for New Jersey required by Section 42 of
				the Code.
(b) In each calendar year, the
				total dollar value of the credits that can be allocated pursuant to this subchapter,
				except for the credits issued in connection with buildings financed with the
				proceeds of certain tax-exempt bonds, is limited by the State housing credit ceiling
				provided at Section 42 of the Code. NJHMFA, therefore, has determined to award these
				limited credits on a competitive basis. Applicants seeking an allocation of these
				credits must apply pursuant to one of the cycles set forth at
				N.J.A.C.
				5:80-33.4, 33.5, or 33.6. NJHMFA ranks the
				applications received in each cycle according to the respective point scales
				provided at N.J.A.C. 5:80-33.15, 33.16, and 33.17.
				The credits assigned to each cycle are then reserved for the highest-ranking
				applications that meet the eligibility requirements set forth at
				N.J.A.C.
				5:80-33.12.
(c) Credits issued in connection with buildings
				financed with the proceeds of tax-exempt bonds subject to the volume cap
				restrictions provided at Section 42(h)(4) of the Code are not limited by the State
				housing credit ceiling and, therefore, are not allocated on a competitive basis.
				Applicants seeking such "volume cap tax credits" are directed to the provisions at
				N.J.A.C.
				5:80-33.9.
(d) Every applicant shall comply with the
				requirements of this subchapter and ensure that any application presented to NJHMFA
				is clear, unambiguous, and complete in all respects at the time of
				submission.
(e) These rules shall be
				construed and administered in a manner consistent and in accordance with the Code
				and regulations promulgated thereunder.
(f) Compliance with the requirements of the Code
				is the sole responsibility of the owner of the building for which the credit is
				allowable. NJHMFA makes no representations to the owner or anyone else as to
				compliance with the Code, Federal regulations issued pursuant to the Code, or any
				other laws or regulations governing Low-Income Housing Tax Credits, or as to the
				financial viability of any project. All applicants should consult their accountant,
				tax attorney, or advisor as to the specific requirements of Section 42 of the Code
				governing the Low-Income Housing Tax Credit Program.
(g) This subchapter has been promulgated in a
				manner consistent with the smart growth initiatives required pursuant to Executive
				Order No. 4 (2002).