New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 26 - HOUSING AFFORDABILITY CONTROLS › Section 5:80-26.16 - Household certification and referral; related project information

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The
				administrative agent shall secure all information from applicant households
				necessary and appropriate to determine that restricted units are occupied by
				properly sized households with appropriate low-or moderate-income levels. No
				household may be referred to a restricted unit, or may receive a commitment with
				respect to a restricted unit, unless that household has received a signed and dated
				certification, as set forth in this section, and has executed a certificate in the
				form set forth in Appendices J or K to this subchapter, as applicable.
(b) The administrative agent shall prepare a
				standard form of certification and shall sign and date one for each household when
				certified. An initial certification shall be valid for no more than 180 days unless
				a valid contract for sale or lease has been executed within that time period. In
				this event, certifications shall be valid until such time as the contract for sale
				or lease is ruled invalid and no occupancy has occurred. Certifications may be
				renewed in writing at the request of a certified household for an additional period
				of 180 days at the discretion of the administrative agent.
1. When reviewing an applicant household's income
				to determine eligibility, the administrative agent shall compare the applicant
				household's total gross annual income to the regional low-and moderate-income limits
				then in effect, as adopted by COAH. For the purposes of this subchapter, income
				includes, but is not limited to, wages, salaries, tips, commissions, alimony,
				regularly scheduled overtime, pensions, social security, unemployment compensation,
				TANF, verified regular child support, disability, net income from business or real
				estate, and income from assets such as savings, certificates of deposit, money
				market accounts, mutual funds, stocks, bonds and imputed income from non-income
				producing assets, such as equity in real estate.
2. Except as otherwise specifically provided in
				this subchapter, the sources of income considered by the administrative agent shall
				be the types of regular income reported to the Internal Revenue Service and which
				can be used for mortgage loan approval. Household annual gross income shall be
				calculated by projecting current gross income over a 12-month period.
3. Assets not earning a verifiable income shall
				have an annual imputed interest income using a current average annual savings
				interest rate. Assets not earning income include present real estate equity.
				Applicants owning real estate must produce documentation of a market value appraisal
				and outstanding mortgage debt. The difference shall be treated as the monetary value
				of the asset and the imputed interest added to income. If the applicant household
				owns a primary residence with no mortgage on the property valued at or above the
				regional asset limit as published annually by COAH, a certificate of eligibility
				shall be denied by the administrative agent, unless the applicant's existing monthly
				housing costs (including principal, interest, taxes, homeowner and private mortgage
				insurance, and condominium and homeowner association fees as applicable) exceed 38
				percent of the household's eligible monthly income.
4. Rent from real estate is considered income,
				after deduction of any mortgage payments, real estate taxes, property owner's
				insurance and reasonable property management expenses as reported to the Internal
				Revenue Service. Other expenses are not deductible. If actual rent is less than fair
				market rent, the administrative agent shall impute a fair market rent.
5. Income does not include benefits, payments,
				rebates, or credits received under any of the following: Federal or State low-income
				energy assistance programs, food stamps, payments received for children placed in
				resource family care, relocation assistance benefits, income of live-in attendants,
				scholarships, student loans, personal property such as automobiles, lump-sum
				additions to assets such as inheritances, lottery winnings, gifts, insurance
				settlements, and part-time income of persons enrolled as full-time students. Income,
				however, does include interest and other earnings from the investment of any of the
				foregoing benefits, payments, rebates, or credits.