Key Housing Policy Advances in Tax Credits and Multifamily Programs
TRENTON – The New Jersey Housing and Mortgage Finance Agency (NJHMFA) marked significant developments at its October 19 Board meeting by approving two pioneering programs and committing funding to 15 new Low-Income Housing Tax Credit (LIHTC) projects.
Melanie R. Walter, the Executive Director of NJHMFA, expressed enthusiasm about the agency’s initiatives, stating, “The HMFA Board advanced resolutions committing funds to a broad variety of new developments, each of which will bring safe, high-quality, long-lasting, and affordable housing to communities across our State. Governor Murphy and the Legislature have made record investments in affordable housing production during the past two State budget cycles. This unprecedented support has enabled NJHMFA to leverage federal funds to expand our successful Affordable Housing Production Fund and create two new specialized programs that will help preserve affordable housing in dozens of communities and create many new high-quality housing opportunities for New Jersey residents.”
Urban Preservation Program (A-5596/S-3991)
The Urban Preservation Program (UPP) is a groundbreaking $80 million initiative established within the Affordable Housing Production Fund through Governor Murphy’s FY2024 budget. Its primary objective is to preserve, renovate, and reconstruct LIHTC projects situated in 81 designated cities across the state. These cities are at risk of losing affordability controls, making the UPP an essential tool in safeguarding affordable housing. With 1,510 LIHTC apartments in jeopardy of losing their affordability within the next five years alone, the UPP will ensure the longevity and quality of affordable housing, offering substantial relief to residents.
Workforce Housing Program
Also introduced in Governor Murphy’s FY2024 budget, the Workforce Housing Program (WHP) is a groundbreaking $50 million initiative created within the Affordable Housing Production Fund. This program represents the first-ever dedicated state effort to incentivize the development of deed-restricted apartments for middle-income residents earning between 80% and 120% of the Area Median Income. Furthermore, it will ensure that these units are developed within municipalities with a higher number of job opportunities than housing units or are located near public transit options. This approach will shield middle-income New Jerseyans from escalating rents while connecting them to dependable transportation and increased employment prospects.
The NJHMFA Board’s decision to commit funding for 15 new multifamily LIHTC developments signifies another milestone. Among these developments, 11 were awarded 4% LIHTC, while 4 received 9% LIHTC. These commitments will facilitate the creation or rehabilitation of 1,378 housing units, with a total development cost of $448 million. The viability of many of these projects was made possible through the Affordable Housing Production Fund (AHPF) and related programs. This underscores the critical importance of the programs that NJHMFA has approved in ensuring affordable housing opportunities are accessible to all New Jersey residents.
