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 5:80-33.9 - Volume cap credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Projects financed by tax-exempt bonds that
				request tax credits pursuant to Section 42(h)(4) of the Code are required by Section
				42(m)(1)(D) of the Code to satisfy the requirements for allocation of a housing
				credit dollar amount under the qualified allocation plan. Projects requesting tax
				credits entirely from volume cap do not have to compete and there are no cycle
				deadlines. However, complete applications shall be submitted at least one month
				before the tax-exempt bonds are sold. The following information shall be included in
				order for the application to be deemed complete: all applicable sections of the
				application corresponding to eligibility requirements at
				N.J.A.C.
				5:80-33.12; those sections of the application
				corresponding to the point categories for conversion to tenant ownership (if
				applicable), tax abatement (if applicable), and the negative point categories; a
				period of restriction meeting the criteria corresponding with the maximum points
				stipulated at N.J.A.C. 5:80-33.15(a)1
				i; and a sponsor certification and breakdown of costs and basis. For family
				projects, except for preservation and historic rehabilitation projects, which shall
				retain, at a minimum, their existing percentages of two-bedroom and three-bedroom
				units, 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. A copy of the appraisal/market study
				required by the applicant's lender and/or syndicator may be submitted in lieu of the
				market study required at
				N.J.A.C.
				5:80-33.12(c)1 ii.
1. The governmental unit issuing the bonds is
				required by Section 42(m)(2)(D) of the Code to determine the credit amount needed
				for feasibility and viability of the project. If NJHMFA is the bond issuer, NJHMFA
				shall make this credit determination. If NJHMFA is not the bond issuer, the bond
				issuer shall provide a letter to NJHMFA assigning its responsibility under Section
				42(m)(2)(D) to NJHMFA.
2. In order for a
				project to qualify for all of its tax credits from volume cap, Section 42(h)(4) of
				the Code requires that 50 percent or more of the aggregate basis of the building and
				the land on which it is located be financed with tax-exempt bonds. Qualifying
				tax-exempt bonds are obligations the interest on which is exempt from tax under
				Section 103 of the Code if such obligation is taken into account under Section 146
				of the Code, and the principal payments on such financing are applied within a
				reasonable period to redeem obligations the proceeds of which were used to provide
				such financing.
3. Projects that request
				both volume cap credits and ceiling (competitive) credits shall comply with the
				application requirements for both.
4.
				Projects that would have received negative points pursuant to
				N.J.A.C.
				5:80-33.15(a)15, 17, 18, 19, or
				20 shall not be issued tax credits until such items are corrected.
5. Projects that receive volume cap credits shall
				pay an allocation/issuance fee as described at
				5:80-33.25.