New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 20 - CERTIFICATION AND RECERTIFICATION OF INCOME › Section 5:80-20.8 - Surcharges

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Upon
				recertification, if the gross aggregate family income exceeds the maximum income
				limit pursuant to
				5:80-8.2 by 25 percent or less, the
				family shall continue to occupy the unit without the imposition of any surcharges.
				If the gross aggregate family income exceeds the maximum income limit by more than
				25 percent, the family may continue to occupy the unit, subject to payment of a
				surcharge as outlined in (c) below. Such surcharges may only be imposed with
				approval of the Agency. When imposing surcharges, housing sponsors shall give
				families notice that they may be subject to eviction if their income continues to
				exceed the maximum income limit for six months from the expiration of the family's
				lease.
(b) Families subject to
				surcharges for failing to complete the recertification process (see
				5:80-20.6 ) shall be surcharged at the
				maximum rate outlined in (c) below and may also be subject to eviction in accordance
				with 5:80-20.9. Sponsors shall provide
				families with notice at least 30 days prior to the expiration of the lease that a
				surcharge will be imposed for failure to recertify. Such surcharges or eviction
				actions require Agency approval.
(c)
				Surcharges imposed shall be based upon a family's unit rent in accordance with the
				following schedule:
Percentage that Gross Aggregate Income exceeds the
						  Maximum
Surcharge on Unit
Income Limit
Rent
Up to and including 125%
None
In excess of 125% up to and including 130%
5%
In excess of 130% up to and including 135%
10%
In excess of 135% up to and including 140%
15%
In excess of 140% up to and including 145%
20%
In excess of 145% up to and including 150%
25%
In excess of 150%
30%
(d)
				Housing sponsors shall pay the surcharge to the municipality granting tax exemption
				to the project but only up to an amount that, together with payments made to the
				municipality in lieu of taxes and for any land taxes, equals 25 percent of the total
				rents or carrying charges of the project for the current and any prior years that
				the project has been in operation. For projects on which the Agency has made a loan
				financed with the proceeds of bonds issued prior to January 1, 1973, any remainder
				of the surcharge or the total surcharge, if tax exemption has not been granted,
				shall be paid into the Agency's housing finance fund securing the bonds issued to
				finance the project. For projects financed on or after January 1, 1973, any
				remainder of the surcharge or the total surcharge, if tax exemption has not been
				granted, shall be paid to the Agency.
(e) Surcharges shall be imposed upon expiration of
				the lease provided families have received 30 days notice pursuant to
				5:80-20.5. Families which have not
				received 30 days notice prior to lease expiration shall not have surcharges imposed
				until the 30 day notice has expired.