The Unified Application for NJHMFA Multifamily Rental Housing Production Programs (UNIAP) from the New Jersey Housing and Mortgage Finance Agency (NJHMFA) is now available. The UNIAP can be used for Multifamily Financing Programs, LIHTC and Supported Housing and Special Needs Programs.

NJHMFA also posted the nine percent LIHTC timeline and other important resources.

NJHMFA Financing:
Projects seeking construction and/or permanent financing from NJHMFA should contact the Multifamily Supportive Housing and Lending Division at (609) 278-8884 as soon as possible. Applicants seeking a conditional financing commitment at the May 21, 2020 meeting of the NJHMFA Board must submit a financing application by no later than March 26, 2020. Applicants seeking a conditional financing commitment at the June 25, 2020 meeting of the NJHMFA Board must submit a financing application by no later than May 14, 2020.

MFPHPP and Section 811:
Sponsors that wish to apply for $75,000 per unit capital subsidy through the Money Follows the Person Housing Partnership Program (MFPHPP) and Section 811 Project Rental Assistance (Sect. 811 PRA) in their nine percent applications must receive a conditional commitment no later than the June 25, 2020 NJHMFA board meeting.

Please submit your applications for MFPHPP to the Multifamily Supportive Housing and Lending Division and Sect. 811 PRA applications to the Property Management Division no later than May 14, 2020.

Underwriting Guidelines:
Equity Range
No equity range will be established for the 2020 nine percent round. Applicants should underwrite at pricing based upon a commitment from their equity investor. However, applicants should be advised that no hardship applications will be accepted for adjustments made in equity pricing between application and closing with the investor. Applications without a firm commitment from an equity investor shall be underwritten at $.90.

Applicable Percentage

  • 00 percent for the 70 percent present value credit.
  • 20 percent for the 30 percent present value credit.

Average Income Set-Aside:
Please be advised that nine percent applicants will NOT be permitted to underwrite assuming the new “Average Income” or “Income Averaging” federal minimum set-aside election in 2020 applications.

All 2020 applicants must select either the 20 percent at 50 percent or 40 percent at 60 percent minimum set aside and adhere to current underwriting parameters (units underwritten above 60 percent of Area Median Income will be treated as market rate or unrestricted). After award, owners should notify the Agency of any substantive changes to the project, including a requested change in minimum set aside by no later than carryover/binding commitment.

Inclusionary Reviews:
All four percent and nine percent LIHTC applications involving the development of new affordable units, including 100 percent affordable, mixed-income and mixed-use development, must undergo an Inclusionary Review. Applicants are strongly encouraged to complete step one in advance of submitting an application for either Agency financing and/or LIHTC. In the event step one is not completed prior to submission, the Inclusionary Review must be submitted and completed as part of the application review.  However, be advised that it is the responsibility of the applicant to ensure that all applicable steps are completed. Failure to complete the necessary steps in a timely fashion may result in an extended delay or an application being declared incomplete.

Applicants can submit the step one information to the Tax Credit Division (as applicable) via the LIHTC mailbox: NJHMFAtaxcredits@njhmfa.gov. No hard copies of the material are required. For more information, review the Agency’s Inclusionary Policy.

Submission:
Submit one paper copy of your application in an extra-large three-ring binder (submit one additional bound copy of the market study for a total of two market studies) and one electronic copy on a flash drive or CD.

Application Fee:
The nine percent application fee is $4,000. Payment of the application fee is required in order for a nine percent application to be considered complete.