reglab/statecodes huggingface dataset:
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 26 - HOUSING AFFORDABILITY CONTROLS › Appendix K

Current through Register Vol. 56, No. 14, July 15, 2024
FORM OF CERTIFICATE FOR APPLICANTS CERTIFIED TO RENTAL UNIT,
				  REQUIRED BY SECTION 5:80-26.18(c)2
CERTIFICATE FOR APPLICANT
CERTIFIED TO A RENTAL UNIT SUBJECT TO
AFFORDABLE HOUSING RESTRICTIONS
My name is ...... and I am making this certificate in connection
				  with my certification to rent the Affordable Housing unit located at
.....................................................................
.
I am aware, as the renter of an Affordable unit, that from this
				  date until ......., 20... as long as I am renting the unit described above, my
				  renting the apartment is subject to the requirements that are listed below:
1.
I am required to pay all rent set
						  forth in my lease on time and in
the manner provided for in my lease.
2.
I know that I am required to live in
						  my apartment, and that I
cannot sublease it or rent it out to any other person, not
						  even to
members of my family.
3.
I know that the maximum rent I am
						  supposed to pay to my landlord is
limited by law, that it is announced each year by .......,
						  and that
I can call ...... at any time if I have any questions about
						  what
rent I am supposed to be paying.
4.
I know that I am not allowed to make
						  any improvements to my
apartment unless they have been approved in writing by
						  .......
BE IT REMEMBERED, that on this the ... day of ......., 20... the
				  signer of this Certificate ...... appeared personally before me and who, being duly
				  sworn by me, deposed and made proof to my satisfaction (i) that he/she is the
				  Purchaser of the Affordable home that is identified as said Purchaser in the
				  foregoing Certificate, and (ii) and that he/she has executed said Certificate with
				  respect to the purchase of the property described in the Certificate and for the
				  purposes described and set forth therein.
Sworn to and subscribed before me, ...... on the date set forth
				  above.
.......................................
NOTARY PUBLIC
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 28 - NONPUBLIC RECORDS › Section 5:80-28.1 - Nonpublic records

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The documents,
				files, data and other records of the Agency which are listed below shall not be
				deemed to be government records subject to public access pursuant to
				47:1A-1 et seq. Such records shall not
				be available for inspection, examination or copying by members of the public or by
				any other individual except authorized members and employees of the Agency or except
				as provided by order of the Governor of the State, a court or tribunal of competent
				jurisdiction, or applicable law.
1. All
				confidential reports, executive memoranda and evaluations submitted to the Executive
				Director of the Agency, the members of the Agency or to any other State
				Agency;
2. All personnel
				records;
3. All records concerning
				applications for employment with the Agency;
4. All records concerning personal or financial
				information submitted by applicants for or tenants of rental housing units financed
				by the Agency;
5. All records concerning
				personal or financial information submitted by applicants for or recipients of any
				single family mortgage loan or home improvement loan of the Agency;
6. All records concerning personal or financial
				information, including Agency form, Certification and Questionnaire, submitted by
				individuals, corporations, partnerships and other entities doing or seeking to do
				business with the Agency; and
7. All
				reports, correspondence and other documents or data provided or discussed at
				executive sessions of the meetings held by the members of the Agency, except that
				any action taken or other information required to be disclosed to the public
				pursuant to the provisions of the Open Public Meetings Act,
				10:4-6 et seq., shall not be deemed to
				be nonpublic records within the scope of this subchapter.
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 5:80-29.3 - General applicability

Current through Register Vol. 56, No. 14, July 15, 2024
The rules within this subchapter shall apply to all
				  Agency-financed housing projects and to housing projects no longer financed by the
				  Agency but remaining subject to Agency statutory and regulatory control. In the
				  event the housing project receives HUD Section 8 or Section 236 subsidies or has an
				  Agency mortgage insured, directly or indirectly, by HUD, or the project receives
				  other HUD financial assistance, any appropriate HUD rules, regulations or
				  requirements (hereinafter "HUD directives") shall also apply. In the event that
				  there are any inconsistencies between the rules in this subchapter and applicable
				  HUD directives, the HUD directives shall prevail.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 30 - RESIDUAL RECEIPTS › Section 5:80-30.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following terms, when used in this subchapter, shall have the
				  following meanings:
"Qualifying development" means an Agency-financed housing project
				  owned by a nonprofit sponsor, except for projects receiving Section 8 subsidies
				  pursuant to an Annual Contributions Contract executed after the adoption of
				  regulations by the U.S. Department of Housing and Urban Development on February 29,
				  1980, at 24 CFR 883, which has:
1. Produced
				a positive cash flow from operations in each of the past three fiscal years;
				and
2. Been current in all escrow and
				debt service payments for the past three fiscal years.
"Residual receipts" means the balance of funds remaining after the
				  deduction of the following items from the cash and the investment accounts of a
				  qualifying development:
1. Debt service
				arrearages;
2. Current unpaid
				invoices;
3. Three months of operating
				expenses (for senior citizen projects) or six months of operating expenses (for
				family projects), which includes debt service and reserve payments, of the latest
				Agency approved annual budget;
4. Full
				funding of all required reserve accounts;
5. Anticipated or proposed capital improvements;
				and
6. Any other current obligations of
				the qualifying development.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 30 - RESIDUAL RECEIPTS › Section 5:80-30.2 - Uses of residual receipts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) For qualifying
				developments, residual receipts may be used:
1. To
				provide funding to expand the supply of "affordable rental housing" or to render
				financial assistance to other Agency financed or "affordable housing projects" (the
				terms "affordable rental housing" and "affordable housing project" shall mean
				housing with income unit distribution consistent with the requirements of tax-exempt
				financing pursuant to the then-current Internal Revenue Code);
2. For funding of supplementary services to the
				qualifying development, such as free senior citizens transportation, medical
				assistance and other social services programs and activities; and
3. For other uses as may from time to time, be
				requested, which will enhance the feasibility of a new project or the financial and
				social condition of an existing project.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 30 - RESIDUAL RECEIPTS › Section 5:80-30.3 - Request for use of residual receipts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) All requests to use
				residual receipts funds must be approved by the Agency in advance. Requests shall be
				made in writing by the sponsor of a qualifying development and submitted to the
				Agency's Director of Property Management.
(b) The request shall specify the purpose, amount
				and payee. The request shall be accompanied by a resolution of the nonprofit
				sponsor's board of directors. If the request is for social services or professional
				services, the request shall also be accompanied by a proposal outlining the services
				and the cost. If the request involves payment to a third party, an Administrative
				Questionnaire, completed by the third party, shall also accompany the
				request.
(c) The officers, directors and
				principals of the qualifying development shall submit certifications that they will
				not receive any fee or compensation, other than reimbursement for out-of-pocket
				expenses, for services performed in connection with the use of residual receipts.
				Such certification may also be required for the officers, directors and principals
				of the entity receiving the funds, as determined by the Agency.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 30 - RESIDUAL RECEIPTS › Section 5:80-30.4 - Agency review and approval

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Upon receipt of a
				complete request package as delineated in
				5:80-30.3, the Agency will review the
				request to determine whether the requested use of funds falls within the permissible
				uses set forth in
				5:80-30.2(a)  and
				whether there are sufficient residual receipts to fund the undertaking requested.
				The Agency will also evaluate the requested undertaking for feasibility.
(b) If the use of the receipts is for total funds
				of $ 25,000 or less, it may be approved by the Executive Director. If the request is
				for funds in excess of $ 25,000, the recommendation and request package shall be
				submitted to the Agency Board for approval.
(c) Agency approval will be subject to receipt of:
1. An opinion from Agency bond counsel that the
				proposed use of residual receipts is permitted under the terms of the Bond
				Resolution and other Bond documents in connection with the Bonds issued to finance
				the qualifying development; and
2. An
				opinion by counsel for the qualifying development that the sponsor's formation
				documents and the laws under which the sponsor was formed permit the proposed use of
				residual receipts.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 30 - RESIDUAL RECEIPTS › Section 5:80-30.5 - Disbursement of residual receipts

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Upon approval of a
				request for the use of residual receipts, the sponsor of the qualifying development
				shall transfer the residual receipts to the Agency. The Agency shall maintain the
				residual receipts in a separate account and shall make all disbursements from the
				account to pay for the cost of the approved undertaking. The Agency shall maintain
				accounting records reflecting the disbursement.
(b) Prior to the disbursement of any residual
				receipts, the Agency will require acceptable documentation of expenses associated
				with the undertaking being financed with residual receipts.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 31 - ATTORNEY SERVICES › Section 5:80-31.1 - Applicability

Current through Register Vol. 56, No. 14, July 15, 2024
The rules within this subchapter apply to the engagement of the
				  services of an attorney by housing sponsors during the operation of their housing
				  project and which services will be paid out of project funds. These rules shall not
				  apply to attorney services paid for out of return on equity funds approved by the
				  Agency for distribution or out of non-project funds.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 31 - ATTORNEY SERVICES › Section 5:80-31.2 - Scope of services

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Sponsors may engage
				the services of an attorney to perform necessary general legal services in
				connection with and respecting the operation of their project. Such general legal
				services include, but are not limited to:
1.
				Advising the sponsor with regard to the rules of the project, the Agency and, if
				applicable, the Department of Housing and Urban Development;
2. Advising the officers and directors on
				elections as provided by the by-laws or partnership agreement of the sponsors and
				supervision of elections of all officers and directors;
3. Preparation and filing of any necessary
				reports, forms and other documents required by law;
4. Advising the sponsor with regard to legal
				matters related to project bank accounts, resolutions, duties of officers, directors
				and employed personnel;
5. Preparation
				and review of contracts and purchase orders concerning the housing
				project;
6. Advising the sponsor and
				managing agent with regard to tenant and lease matters, but not including summary
				dispossess actions; and
7. Such other
				services as the sponsor may direct to be performed in connection with and respecting
				the operations of the project.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 31 - ATTORNEY SERVICES › Section 5:80-31.3 - Maximum fees

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The maximum fees
				that can be paid from project funds for Agency-approved attorney services are as
				follows:
1. General legal matters . . . up to $
				241.00 /hour;
2. Tenancy actions, as
				follows:
i. For each of the first two cases
				(requiring court appearance) on the same day . . . up to $ 190.00;
ii. For each additional case presented on the same
				day . . . up to $ 141.00; and
iii. For
				each case prepared for trial but resolved prior to actual court appearance . . . up
				to $ 96.00; and
3. General
				litigation, as follows:
i. Non-trial hours . . .
				up to $ 334.00/hour; and
ii. Trial hours
				. . . up to $ 384.00/hour.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 31 - ATTORNEY SERVICES › Section 5:80-31.4 - Agency approval

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Housing sponsors
				desiring to engage the services of an attorney pursuant to the rules within this
				subchapter shall obtain the written approval of the Agency. Sponsors shall submit a
				proposal outlining the scope of services to be performed by the attorney.
(b) The Agency shall approve the engagement of
				attorney services provided the services and fees to be charged fall within those
				permitted by 5:80-31.2(a) or (b) and
				31.3, respectively. For services outlined in
				5:80-31.2(c), the
				Agency shall approve the engagement of an attorney provided the services are
				necessary or beneficial to the project, as determined by the Agency, and there are
				sufficient project funds to pay for such services. The Agency does not guarantee the
				availability of funds.
(c) All sponsors
				shall enter into a written attorney engagement agreement using forms approved by the
				Agency.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 32 - HOUSING INVESTMENT SALES › Section 5:80-32.2 - Scope

Current through Register Vol. 56, No. 14, July 15, 2024
The provisions of this subchapter are intended to set forth the
				  continuing requirements and restrictions applicable to housing projects that
				  participated in housing investment sales.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 32 - HOUSING INVESTMENT SALES › Section 5:80-32.3 - Prepayment

Current through Register Vol. 56, No. 14, July 15, 2024
Any prepayment of the first mortgage subsequent to a housing
				  investment sale as may be permitted by the Agency's rules on prepayment shall not
				  operate to relieve the buyer of the continuing requirements of this subchapter. As a
				  condition to prepayment, a new or amended deed restriction, as may be required by
				  the Agency, shall be recorded upon prepayment and shall contain the same
				  affordability restrictions as the project's deed restriction in effect at the time
				  of prepayment. The affordability provisions shall continue from the date of
				  prepayment through the end of the regulatory period, as required by this subchapter,
				  and the project's deed restriction in effect at the time of
				  prepayment.
New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 32 - HOUSING INVESTMENT SALES › Section 5:80-32.4 - Return on equity

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Buyers are eligible to earn a return on equity
				based upon any equity investment in the project, including the developer's fee that
				is being pledged as equity. The rate of return shall be established pursuant to
				N.J.A.C.
				5:80-3.3(e), unless the buyer
				elects to qualify for enhanced return on equity under (b) below. During the
				regulatory period, after expiration of the term of the Agency mortgage, the return
				on equity restrictions shall continue as provided in this section until the owner
				funds an operating reserve account in the amount provided in N. J.A.C.
				5:80-5.10(b)7. The operating reserve account shall be maintained until the
				expiration of the deed restriction and administered as provided in
				N.J.A.C.
				5:80-5.10(b)7. If the operating
				reserve account is used, the return on equity restrictions hereunder shall be
				reinstituted until the operating reserve account is again fully funded.
(b) Buyers who agreed to fund a capital
				improvement account, and agree to preserve the low-income status of the project for
				an additional 15 years, as provided below, may receive enhanced return on equity
				during the term of the Agency's mortgage through a split of the project's residual
				receipts on a 50/50 basis with the Agency.
1. The
				capital improvement account would be in addition to the reserve for repair and
				replacement account, the operating reserve account, and any rehabilitation
				expenditures escrow funded in connection with secondary financing. The capital
				improvement account shall be used for capital improvements, repairs, maintenance and
				any other expense of the project which will help ensure that the project is
				maintained as safe and sanitary rental housing during the mortgage term and
				thereafter. Ten percent of the annual residual receipts must be deposited into the
				capital improvement account prior to distribution of the residual receipts between
				the Agency and owner;
2. The buyer shall
				execute a deed restriction which preserves the project as affordable rental housing
				for an additional 15-year period, subject to the same Agency restrictions as are
				applicable during the 35-year period under the definition of housing investment
				sales in 5:80-32.1;
3. The Agency's annual share of the residual
				receipts shall be deposited into the Housing Investment Sales Account;
4. Buyers who elect to participate in this option
				must have made such election at the time of closing. Buyers may elect to participate
				subsequent to closing, provided they fund the capital improvement account with an
				amount equivalent to the amount that would have been required since closing and
				distribute 50 percent of the accumulated residual receipts to the Agency for deposit
				into the Housing Investment Sales Account.
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 5:80-33.3 - Application cycles

Current through Register Vol. 56, No. 14, July 15, 2024
NJHMFA shall establish funding cycles and the amount of credits
				  available in each cycle. They will be advertised on the NJHMFA website at
				  http://ni.gov/dca/hmfa/ and in at least five of the following newspapers: Atlantic
				  City Press, The Record, Newark Star Ledger, The Courier News, The Asbury Park Press,
				  The Camden Courier Post, South Jersey Times, and The Times of Trenton. NJHMFA shall
				  set the eligibility cut-off dates in each year for receipt of completed
				  applications. Applications shall be submitted to NJHMFA by 12:00 noon of the
				  application deadline date in order to be considered for review. The application
				  filing deadlines and the credits available in each cycle shall be announced as early
				  in the year as possible. Reservations shall be announced approximately 120 days
				  after the deadline for the cycle. NJHMFA may adjust the number of cycles or adjust
				  the award dates if required by the timing of passage of Federal legislation or
				  adoption of IRS rules and regulations or for other compelling circumstances. A
				  project cannot compete in more than one cycle simultaneously.
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 5:80-33.7 - Federal nonprofit set-aside

Current through Register Vol. 56, No. 14, July 15, 2024
Not less than 10 percent of the credit ceiling shall be awarded to
				  qualified nonprofit organizations in accordance with the Federal nonprofit
				  requirement, as stated at 26
				  U.S.C. §
										42(h)(5)(A).
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 5:80-33.10 - Application fee schedule

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following fees shall be submitted at the
				time the application or reapplication is submitted:
1. An application fee of $ 5,000 shall be paid by
				applicants for projects applying to the Family, Age-Friendly Senior, or Supportive
				Housing Cycle and to the Mixed-Income Reserve, and by applicants for projects
				applying for volume cap tax credits.
2.
				A reapplication fee of $ 1,000 shall be paid for projects requesting credits from
				the Hardship Reserve.
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 5:80-33.11 - Cycle deadlines

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Application cycles shall be announced by
				NJHMFA through notices sent to the mailing list maintained by the Tax Credit
				Division no later than 45 days prior to the deadline. Applications shall be accepted
				beginning one month prior to the deadline date. Applications shall be submitted to
				NJHMFA by 12:00 noon of the application deadline date in order to be considered for
				review. Late and substantially incomplete applications shall not be admitted into a
				cycle. Late applications shall be returned to the applicant.
(b) It is the burden of the applicant to comply
				with the requirements of these rules and to ensure that the application presented to
				NJHMFA is clear, unambiguous, and complete in all respects at the time of
				submission.
(c) Applicants shall be
				given 48 hours to cure defects as follows, except for applications that NJHMFA deems
				to be substantially incomplete:
1. If the
				applicant has failed to include a required document, the applicant may supply the
				document; provided, however, that the document existed on the application deadline
				date and, if the document is a legal agreement or instrument, the document was
				legally effective on the application deadline date.
2. If statements or items in the application are
				contradictory or mutually inconsistent, the applicant may present information
				resolving the contradiction or inconsistency; provided, however, that the
				information accurately reflects the state of affairs on the application deadline
				date.
3. The applicant may provide any
				required signature that has been omitted.
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 5:80-33.13 - Application for additional credits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Applicants may apply
				for additional credits only through a hardship request from the Reserve.
1. Applicants submitting hardship requests of up
				to $ 150,000 shall apply for an award from the Reserve. See
				N.J.A.C.
				5:80-33.8 for a description of the
				Reserve.
2. Applicants shall submit all
				of the following before NJHMFA will consider any hardship request:
i. The re-application fee;
ii. A Sponsor Certification for Re-Application
				(including all updates to the original application);
iii. A rent qualification chart, income and
				expense statements, and 15-year cash flow pro forma, all reflecting current
				projections. The pro forma shall be signed by the first mortgagee (or
				syndicator/investor if the project has no hard debt) exclusively reflecting the
				following language verbatim: "We acknowledge that this pro forma substantially
				matches the assumptions used in our underwriting of the mortgage (equity
				investment)";
iv. An explanation why
				additional credits are being sought plus supporting documentation. Projects that did
				not submit a Phase I environmental assessment (conducted in accordance with ASTM
				E1527-21, Standard and Poor's Enhanced Protocol) with their original applications
				for tax credits are not eligible for additional credits for environmental
				overruns;
v. Evidence that at least 50
				percent of the developer fee is deferred, and that the applicant has attempted to
				increase funding from every other source (except State AHTF from DCA) before
				applying to the Reserve for additional credits. The developer fee cannot exceed that
				stated in the original application; and
vi. A letter agreement with the
				syndicator/investor that addresses the pricing to be paid for the original and
				additional credits. (If the applicant is still incurring costs and is using a
				projection of costs and basis in their application for additional credits, the
				investor shall verify the projection.) The agreement shall also identify the
				intended end user/purchaser of the tax credits.
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 5:80-33.14 - Scoring and ranking

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Due to the limited amount of credits and the
				high volume of applications to NJHMFA, only a fraction of the projects that apply
				typically receive credits. In addition to meeting the eligibility criteria described
				at N.J.A.C.
				5:80-33.12, applications that fail to satisfy a
				minimum of 65 percent of the maximum score pursuant to the ranking criteria
				established at N.J.A.C. 5:80-33.15, 33.16, and 33.17
				shall be declared ineligible to obtain a reservation of tax credits. NJHMFA will
				rank projects according to the score sheet submitted in the project's application.
				Should an applicant fail to include a completed self-score sheet, the application
				shall be ranked utilizing a preliminary score as determined by NJHMFA. NJHMFA shall
				perform a cursory review of the application and shall assume the maximum score for
				each of the criteria at
				N.J.A.C.
				5:80-33.13, 33.15, 33.16, 33.17, and this section
				provided the requisite documentation has been submitted. Based on this ranking,
				NJHMFA will then examine the applications of only those projects that rank
				sufficiently high to receive credits. Once it is determined that an application
				meets all eligibility requirements, it is admitted into the cycle and
				underwritten.
(b) Applications shall
				receive points based on the point system for the particular cycle in which they
				compete. In the event of a tie score, projects shall be ranked according to the
				tiebreaker system. Then, reservations shall be awarded to the applications with the
				highest scores and, in the case of equally high scores, to the applications that
				successfully meet the tiebreaker criteria, with reservations first going to projects
				in the set-asides.
(c) All units in the
				project must qualify for a point category in order for the application to receive
				the points, unless expressly stated otherwise in the point categories described at
				N.J.A.C.
				5:80-33.15, 33.16, and 33.17.
(d) Applicants who are successful in receiving tax
				credits are strongly advised to closely oversee during construction the
				implementation of all categories for which the application received points.
				Implementation shall be verified through certifications and on-site inspection by
				NJHMFA (or its authorized designee).
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 5:80-33.15 - Point system for the Family Cycle

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The point system for
				the Family Cycle is as follows:
1. Applicants may
				select one of the following options (10 to 20 points):
i. Projects not located within a Targeted Urban
				Municipality (TUM) tinat extend tineir compliance period for an additional 15 years
				shall be awarded 20 points. The minimum term of the low-income occupancy commitment
				is 30 years: a 15-year compliance period plus a 15-year extended use period. An
				owner electing to extend the compliance period for 15 years will be restricting the
				property for 45 years-a 30-year compliance period and a 15-year extended use period.
				This restriction will be enforceable by NJHMFA and future tenants through a deed of
				easement and restrictive covenant, which shall be recorded by NJHMFA pursuant to
				State law at the latter of the carryover allocation described at
				N.J.A.C.
				5:80-33.24(a)1  or acquisition of
				the property; or
ii. Projects located in
				a TUM that extend their compliance period for an additional 15 years shall be
				awarded 15 points; or
iii. For
				single-family and duplex housing that will convert to tenant ownership, 10 points
				shall be awarded. Such projects must convert to home ownership at the end of the
				compliance period. Syndication documents must reflect the conversion. The deed of
				easement and restrictive covenant shall reflect a right of first refusal to be
				granted by the owner to the tenants.
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 5:80-33.17 - Point system for the Supportive Housing Cycle

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The point system for
				the Supportive Housing Cycle includes all point categories of the Family Cycle
				except for the point categories at
				N.J.A.C.
				5:80-33.15(a)3, concerning
				large-family units,
				N.J.A.C.
				5:80-33.15(a)5, concerning social
				services, and N.J.A.C. 5:80-33.15(a)
				21, concerning supportive housing units.
				Additionally, the point categories at
				N.J.A.C.
				5:80-33.15(a)14 ii and iii are
				replaced, respectively, with the following, for a maximum of seven points available
				pursuant to N.J.A.C. 5:80-33.15(a)14
				 for applications in the Supportive Housing Cycle.
1. Two points shall be awarded to projects that
				offer on-site transportation at least once per week. Evidence of existing service
				and/or an executed contract stipulating fees and frequency of service shall be
				submitted in the application.
2. For
				non-age-restricted projects, a project that is fully located within a school
				district wherein 40 percent or more of the students are either meeting expectations
				(Level 4) or exceeding expectations (Level 5) on the Grade 4 New Jersey Student
				Learning Assessments (NJSLA) in both Math and English Language Arts (ELA) shall
				receive one point. NJHMFA shall rely on the most recent data available from the New
				Jersey Department of Education (DOE) as of the application deadline, as well as the
				data for the preceding calendar year. For example, the data released for 2021 and
				2022 by the DOE will be accepted for applications submitted in 2023. If the NJSLA is
				no longer in use, NJHMFA will substitute whatever assessment is designated as a
				replacement by the DOE.
3. For
				age-restricted projects, a project that is fully located within a municipality
				wherein 25 percent or more of the residents in the municipality are 55 years of age
				or older shall receive one point. NJHMFA shall rely upon the American Community
				Survey 5-Year Estimates, Table DP05 (ACS Demographic and Housing Estimates), U.S.
				Census Bureau. NJHMFA shall rely upon the data effective in the calendar year of the
				application deadline, as well as in the preceding year. For example, the data
				released in calendar years 2021 and 2022 by the U.S. Census Bureau will be accepted
				for applications submitted in 2023.
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 5:80-33.19 - Tiebreaker system

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The following tiebreaker system shall be used
				to break ties between projects with the same score:
1. If competing projects have a tie score, a tax
				credit reservation shall be awarded based on the following:
i. For projects located outside of a TUM, a tax
				credit reservation shall be awarded to the project located in the municipality that
				has either never hosted a project that received a nine-percent LIHTC award or has
				gone the longest time since most recently hosting a project that received a
				nine-percent LIHTC award. NJHMFA shall publish annually a list of New Jersey
				municipalities with the years of their most recent nine-percent LIHTC awards. To
				facilitate planning, projects awarded nine-percent LIHTCs during the year prior to
				the application cycle deadline shall not be included for purposes of calculating the
				most recent year of award. If the project is part of a court-approved municipal fair
				share housing development plan, prior awarded projects that are part of the same
				fair share housing development plan shall not be included for purposes of
				calculating the most recent year of award, provided that the current project was
				identified in the fair share housing development plan submitted with the previously
				awarded application(s) and provided further that the fair share housing development
				plan listing the project and evidence of court approval are submitted in the current
				application; and
ii. For projects
				located within a TUM, a tax credit reservation shall be awarded to the project
				located in the municipality with the lowest MRI ranking (that is, with the greatest
				level of distress). For example, a municipality ranked number 4 would be awarded
				over a municipality ranked number 33.
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 5:80-33.20 - Municipal comment

Current through Register Vol. 56, No. 14, July 15, 2024
The Code requires that the chief executive officer of the
				  municipality in which the project is to be located be given the opportunity to
				  comment on the project. The application may include a letter from the chief
				  executive officer of the municipality or NJHMFA staff shall notify the chief
				  executive officer of the municipality and allow them a reasonable opportunity to
				  comment on the project.
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 5:80-33.21 - Application needs analysis

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Section 42(m)(2)(a)
				of the Code provides: "The housing credit dollar amount allocated to a project shall
				not exceed the amount the housing credit agency determines is necessary for the
				financial feasibility of the project and its viability as a qualified low-income
				housing project throughout the credit period." This determination, known as the
				"needs analysis," shall be performed by NJHMFA with respect to those applications
				fulfilling the eligibility requirements at
				N.J.A.C.
				5:80-33.12. In the needs analysis, NJHMFA shall
				compare the project's total development costs to the funding sources the applicant
				has identified to meet those costs. As part of its obligation pursuant to Section
				42(m)(2) of the Code, NJHMFA shall determine the reasonableness of the developmental
				and operational costs of the project and may make adjustments to costs as necessary
				to ensure the viability of the project throughout the credit period and compliance
				with the QAP. Such adjustments shall not trigger a point deduction pursuant to
				N.J.A.C.
				5:80-33.15(a)24. If the total
				funding sources not including tax credit equity are less than the total development
				costs, then a funding gap exists and the applicant has demonstrated a need for
				credits, provided, however, that the following conditions are satisfied:
1. The project's development and operational costs
				are reasonable as required under Section 42(m)(2)(B)(iv) of the Code;
2. Funding sources identified by the applicant
				meet the requirements at
				N.J.A.C.
				5:80-33.12(c)6;
3. The project is financially feasible in terms of
				the existence of sufficient sources to pay for total development costs;
				and
4. The project shall remain viable
				throughout the credit period.
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 5:80-33.22 - Tax Credit Committee review and reconsideration process

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Based on the
				rankings, eligibility review, and needs analysis, NJHMFA shall make reservation
				award recommendations to a quorum of the Tax Credit Committee (Committee). The
				Committee shall consist of the Commissioner of DCA, or designee, the Executive
				Director, and three members of the NJHMFA staff designated by the Executive
				Director.
(b) The Committee shall review
				the rankings, eligibility, and tiebreaker decisions as well as requests for
				reservations from the Reserve, and shall award tax credit reservations accordingly.
				All applicants shall be notified, in writing, whether their projects received a
				reservation and the basis for the decision. A reservation commitment letter shall be
				mailed to all reservation recipients.
(c) An applicant may appeal any decision of the
				Committee by submitting a written request for reconsideration to the Executive
				Director no later than 10 business days from the date of the Committee meeting at
				which awards/decisions are announced. The request shall include a comprehensive
				discussion of the basis for reconsideration. Such requests will be considered
				promptly by the Committee and the Committee's disposition of the request shall
				constitute final agency action. In the absence of a request for reconsideration, the
				date of the Committee meeting at which awards/decisions are announced shall
				constitute the date of final agency action.
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 5:80-33.23 - Allocation needs analysis

Current through Register Vol. 56, No. 14, July 15, 2024
In accordance with Section 42(m)(2) of the Code, NJHMFA evaluates
				  the need for the tax credit at the time of application, the time of allocation, and
				  after the building is placed in service. The credit amount allocated is limited to
				  the lesser of the credit amount based on the needs analysis or the credit amount
				  generated from the project's qualified basis (as potentially capped by the eligible
				  basis limits). The determination of whether the credit amount reserved is needed for
				  the financial feasibility and continued viability of the project shall include an
				  examination as to whether there have been increases or decreases in project costs,
				  other funding sources, or rental subsidies that would result in a higher allocation
				  than needed. If NJHMFA has a reasonable basis for concluding the equity factor
				  submitted by the applicant is inconsistent with market conditions, NJHMFA reserves
				  the right to adjust the equity factor in its underwriting. Any substantive changes
				  to the project's financing plan or costs shall be explained in detail and may cause
				  the project to be reconsidered by NJHMFA.
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 5:80-33.25 - Allocation/issuance fee schedule

Current through Register Vol. 56, No. 14, July 15, 2024
Projects requesting an allocation of tax credits shall pay a fee
				  equaling two percent of the allocation amount over the 10-year credit period for
				  NJHMFA-financed projects and three percent of the issuance amount over the 10-year
				  credit period for non-NJHMFA-financed projects. One-half of the fee shall be paid at
				  the time the allocation criteria described at N.J.A.C 5:80-33.24(a) is submitted to
				  NJHMFA. For projects requesting an issuance of tax credits from volume cap, the
				  issuance fee shall equal two percent of the issuance amount over the 10-year credit
				  period for NJHMFA-financed projects and three percent of the issuance amount over
				  the 10-year credit period for non-NJHMFA-financed projects. One-half of the fee
				  shall be paid at the time the credit determination described at
				  N.J.A.C.
				  5:80-33.9(a)1  is made. For both
				  types of projects, the balance (adjusted higher if volume cap tax credit issuance
				  increases) shall be paid prior to issuance of the IRS Form 8609. Allocation/issuance
				  fees are non-refundable.
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 5:80-33.27 - Placed in service needs analysis

Current through Register Vol. 56, No. 14, July 15, 2024
(a) Pursuant to Section
				42(m)(2) of the Code, NJHMFA shall conduct the last of its required needs analysis
				evaluations at the time the project is placed in service. The analysis shall be
				based on the project cost certification of an independent C.P.A. and the permanent
				financing sources (see
				N.J.A.C.
				5:80-33.28). If the amount of the tax credit
				request is not needed for the financial feasibility of the project and its viability
				as a qualified low-income housing project throughout the credit period, the amount
				of the tax credit shall be reduced to the needed amount.
(b) The determination of whether the amount
				requested is needed for financial feasibility and continued viability of the project
				shall include an examination as to whether there have been increases or decreases in
				project costs, other funding sources, or rental subsidies that would result in a
				higher allocation than needed. If NJHMFA has a reasonable basis for concluding the
				equity factor submitted by the applicant is inconsistent with market conditions,
				NJHMFA reserves the right to adjust the equity factor in its underwriting. The Code
				requires that NJHMFA reduce the credit amount based upon need; however, this does
				not mean that NJHMFA will jeopardize the long-term financial feasibility and
				viability of the project by arbitrarily taking back credits. For example, if the
				equity market improved so that projects were able to get better pricing from
				investors, NJHMFA would not necessarily reduce the credit on those projects that use
				the "excess" credits to cover cost overruns or provide betterments in the projects
				such as upgrading the security system, landscaping, provision of appliances, such as
				washers, and the like. NJHMFA shall not allow these additional funds to be used to
				increase the developer fee over that shown on the application.
(c) For each needs analysis, a Sponsor
				Certification shall be submitted. Any substantive changes to the project's financing
				plan or costs shall be explained in detail and may cause the project to be
				reconsidered by NJHMFA.
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 5:80-33.28 - Project cost certification and contractor fee limits

Current through Register Vol. 56, No. 14, July 15, 2024
(a) An independent
				C.P.A. shall audit the development costs of the project in accordance with generally
				accepted auditing standards. A separate audit of the general contractor's costs,
				which includes a sampling of subcontractor invoices, shall also be submitted in
				order to verify consistency with the developer's cost certification. To make sure
				that the necessary paperwork is submitted to NJHMFA in a timely manner, owners shall
				ensure that the cost certification process begins immediately upon construction
				completion. NJHMFA reserves the right to require a compilation of the construction
				costs of the project as approved by an independent C.P.A.
(b) Contractor fee limits are as set forth at
				(b)1, 2, and 3 below.
1. NJHMFA shall approve only
				up to a maximum of two percent of the total hard costs for general contractor
				overhead expenses and up to a maximum of six percent of the total hard costs for
				general contractor profit fees. Bonding and permitting fees are not permitted in
				calculations of overhead and profit.
2.
				Costs for general requirements and/or general conditions are indirect costs incurred
				during the construction of a project, exclusive of material and labor costs. These
				costs are administrative and facilitatory project costs, generally spread out over
				the course of construction. NJHMFA shall approve only up to a maximum of six percent
				of the total hard costs for general requirements and/or general
				conditions.
3. Limitations for general
				contractor overhead expenses, general contractor profit fees, and general
				requirements/general conditions costs are set forth in the Technical Services Design
				and Document Guidance Standards, available at
				http://ni.aov/dca/hmfa/developers/techservices. These limitations apply to
				applications submitted for both NJHMFA and LIHTC funding.