The New Jersey Housing and Mortgage Finance Agency (NJHMFA) adopted a new rent reset rule that allows apartment rents to be adjusted when a unit is vacated, without pre-approval of the increase from NJHMFA. The new rule allows NJHMFA property owners to raise rents on vacant units to meet current affordability standards, thereby increasing operating revenue to ensure a better quality building over the long term. NJHMFA will continue to monitor all properties to ensure they are in compliance and meet affordable rent rules.
NJHMFA also published two proposals for comments, which are due May 17, 2019. The first proposal would reduce the “lockout” period for the prepayment of Agency mortgages from 20 years to 15 years. Once the lockout period ends, developers looking to refinance will be able to do so and thereby be better able to renovate and maintain quality buildings for their residents.
Under the second proposal, NJHMFA would no longer perform an additional precertification of applicants prior to a tenant moving in. This proposed change will enable tenants to move in faster while eliminating a duplicate procedure for building managers. Comments on both proposals should be sent to:
Jim Peasco, Senior Legal Research Analyst
New Jersey Housing and Mortgage Finance Agency
637 South Clinton Avenue
PO Box 18550
Trenton, New Jersey 08650-2085
jpeasco@njhmfa.gov
