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 5:80-33.4 - Family Cycle

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Non-age-restricted developments may apply to
				this cycle. Not less than 50 percent of the total credits awarded in the Family,
				Age-Friendly Senior, and Supportive Housing Cycles will be available in the Family
				Cycle, and the maximum annual allocation of credits to any one development competing
				in this cycle is $ 2,000,000. Total development costs shall not exceed $ 317,625 per
				unit for buildings of one to four residential stories, $ 346,500 per unit for
				buildings with five or six residential stories, and $ 375,375 per unit for buildings
				with over six residential stories, excluding capitalized permanent reserves,
				non-basis-eligible off-site improvements, up to $ 10,000 per unit and $ 400,000
				maximum for an integrated community center or social service space or up to $ 10,000
				per unit and $ 800,000 maximum for a stand-alone community or social service
				building (subject to third-party cost certification), required deferred developer
				fee, if any, and either up to $ 15,000 per unit for adaptive reuse projects or up to
				$ 7,500 per unit for projects achieving the Passive House standard. For adaptive
				reuse projects, NJHMFA will perform a site inspection to assess the amenability of
				conversion to multifamily housing. Additionally, the development, design, and
				construction teams must demonstrate successful experience with the established
				methodologies required to produce an adaptive reuse project. If multiple tranches of
				this cycle are awarded, all set-asides for this cycle will be applicable to each
				tranche. Minimum rehab projects are not eligible to apply in this cycle. Unless
				market area demographics and/or financial feasibility demonstrate otherwise, all
				non-age-restricted projects (except preservation and historic rehabilitation
				projects) must adhere to the following minimum bedroom distributions: 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. There are two set-asides in the Family Cycle:
1. Mixed-Income set-aside: The first reservation
				of credits from the Family Cycle shall be awarded to one project that contains up to
				55 percent affordable units and is located outside of a Targeted Urban Municipality.
				Up to $ 30,000 in credits per tax-credit-eligible unit are available and the maximum
				annual allocation of credits is $ 2,000,000. The limits on total development costs
				do not apply to this set-aside. The project's market study as provided for at
				N.J.A.C.
				5:80-33.12(c)1 ii shall clearly
				demonstrate that the tax credit units in the project provide a minimum 20-percent
				market advantage compared to comparable market-rate units. The project shall achieve
				a minimum of 65 percent of the maximum score under the ranking criteria established
				at N.J.A.C.
				5:80-33.15, including the maximum points
				stipulated at N.J.A.C. 5:80-33.15(a)1
				i, regarding extended affordability; 5:80-33.15(a)11i, regarding site selection;
				5:80-33.15(a)14ii, regarding proximity to public transportation; and
				5:80-33.15(a)14iii, regarding high-performing schools. Should multiple projects be
				deemed eligible at the same Tax Credit Committee meeting, credits shall be awarded
				in accordance with the tiebreaker at
				N.J.A.C.
				5:80-33.19(a)1. If, because of
				lack of demand, the mixed-income set-aside is not utilized, the credits therein
				shall be released into the Family Cycle.
2. Preservation set-aside: The second and third
				reservations of credits from the Family Cycle shall be given to the two
				highest-ranking eligible applications from preservation set-aside projects. The
				maximum annual allocation of credits to developments competing in this set-aside is
				$ 1,400,000. If, because of lack of demand, the preservation set-aside is not
				utilized, the credits in the preservation set-aside shall be released into the
				Family Cycle.