The following words and terms, as used in this subchapter,
shall have the following meanings, unless the context clearly indicates
otherwise.
"Area median income" or "AMI" means the midpoint of a
region's income distribution, that is, one-half of the families in a region
earn more than the area median income and one-half of the families earn less
than the area median income. The area median income is calculated by the U.S.
Department of Housing and Urban Development (HUD) for every metropolitan region
in the country.
"At risk of losing its affordability controls" means a
project with a deed restriction that expires within five years that is "likely"
to convert to market rate (as supported by the market analysis at
5:80-33.12(c)1
ii), project based assistance that expires within five years, a project that
may be condemned or a project that is subject to foreclosure, unless NJHMFA
determines such acquisition is part of an arrangement a purpose of which is to
terminate such affordability controls. For multi-phase projects, forestalling
of a foreclosure by funding of the initial phase shall not preclude latter
phases of the same project from qualifying for the set-asides at
5:80-33.4(a)1,
33.5(a)1 and 33.7(a)2, provided the latter phases satisfy the remaining
elements of the definition of "preservation project" below.
"At risk of losing its level of affordability" means that
operating expenses or capital repair needs are so high that without an award of
tax credits, only very high rent increases will keep the project in an
acceptable condition and financially feasible. If the current owner or a
related party of the current owner shall retain an ownership interest in the
project post-rehabilitation, the owner must demonstrate it did not materially
contribute to the decline of the property that created the high operating
expenses or capital repair needs.
"Average income set-aside" means an election made by a
taxpayer on IRS Form 8609 that requires the income designations of at least 40
percent of the units in a housing project average 60 percent or less of area
median income (AMI). For underwriting purposes, the average of all income
designations of tax-credit-eligible tenants shall not exceed 57.5 percent of
AMI. Designated income/rent levels for tax-credit units may only be set at
10-percent increments ranging from 20 percent of AMI, up to 80 percent of AMI,
and may not be amended without NJHMFA approval. All Federal minimum set-aside
elections are irrevocable.
"Brownfield site" means, pursuant to the Brownfield and
Contaminated Site Remediation Act,
N.J.S.A.
58:10B-1 et seq., "any former or current
commercial or industrial site that is currently vacant or underutilized and on
which there has been, or there is suspected to have been, a discharge of a
contaminant." As evidence, applicants shall submit a Remedial Action Work Plan
or Response Action Outcome (RAO) approved by the New Jersey Department of
Environmental Protection (DEP) or its designee (a Licensed Site Remediation
Professional or LSRP) or a No Further Action (NFA) letter issued by the DEP
within the past 10 years. The NFA shall be for an unrestricted use or, if it is
for a limited restricted use, the applicant shall provide confirmation from an
LSRP that the proposed development may still be constructed consistent with the
limited use.
"Center" means an efficient and compact form of development
having one or more mixed-use Cores as well as residential neighborhoods and
green spaces. Center designations are based on the area, population, density,
and employment of the Center being considered and features of the surrounding
areas. Centers can range in scale from very large, an urban center, to the
smallest, a hamlet. Centers range in scale in the following order: urban,
regional, town, village, and hamlet.
"Code" means the Internal Revenue Code,
26
U.S.C. §§
1 et seq.
"Common area" means, for purposes of the point category at
5:80-33.15(a)13
ii, the area in a sub/individually-metered project where electric usage is not
paid for by a tenant or the area in a master-metered project where utility
usage cannot be attributed to individual dwelling units, whether bedrooms,
apartments, townhomes or condominiums.
"Community service facility" means, as established at
Section 42(d)(4)(C)(iii) of the Code, "any facility designed to serve primarily
individuals whose income is 60 percent or less of area median income within the
meaning of
26 U.S.C. §
42(g)(1)(B)." For example, a
community room, clubhouse or recreation center may be a community service
facility. Lobbies and laundry facilities are not within the scope of this
definition.
"Complete application" means an application submitted to
NJHMFA, including the application fee, completed application forms and
certifications, and all eligibility requirements.
"Core" means a pedestrian-oriented area of commercial and
civic uses serving the surrounding municipality or Center, generally including
housing and access to public transportation.
"Core operating expenses" means expenses for administration,
salaries, maintenance and repairs, maintenance contracts and insurance.
"DCA" means the New Jersey Department of Community Affairs,
established in the executive branch of State government pursuant to
52:27D-1.
"Density bonus" means an economic benefit for low- and
moderate-income housing developers resulting from a zoning change that
increases permitted density. Determination of whether a project is the
recipient of a density bonus shall be made by the municipality or, in the case
of a court-ordered project, the Superior Court judge or special master with
jurisdiction over the suit.
"Designated Center" means a Center that has been officially
recognized as such by the State Planning Commission. In the Pinelands Area,
Designated Center means a Regional Growth Area, Pinelands Village, or Pinelands
Town designated by the Pinelands Commission.
"Designated Highlands Center" means a Center that has been
officially recognized by the Highlands Council.
"Developer fee" or "development fee" means the fee that
covers the overhead and profit of the developer. Certain fees are subsumed
within the developer fee--such as acquisition fees, compensation to the general
partner, financial consultants, employees of the developer, construction
managers/monitors, clerk of the works, and syndicator-required consultants.
Professional fees not paid out of the developer fee are the fees for the
architect, engineer, lawyer, accountant, surveyor, appraiser, soil
investigator, professional planner, historical consultant, and environmental
consultant. (If there are costs listed under the professional planner, the
executed contract shall be submitted. Only those costs determined by NJHMFA to
be for planning purposes shall be shown as a separate line item.) All other
consultant and professional fees shall be included in the developer fee and are
not allowed to be shown as separate line items on the tax credit application;
otherwise, those fees shown separately will be added to the developer fee line
item.
The developer fee contained in the application shall be the
maximum fee (dollar amount) recognized by NJHMFA at the time of cost
certification so long as the project scope remains the same.
Any fee paid to the developer in excess of the developer fee,
such as an acquisition fee, incentive developer fee, or other pseudonym, shall
be treated as a funding source and may not be recognized as a use of
funds.
To the extent there is a reasonable expectation of repayment
(as evidenced by available cash flow and/or confirmation by the applicant's
syndicator/investor or tax attorney), the amount of developer fee allowed for
eligible rehabilitation or new construction costs is limited to 15.00 percent
of total development cost excluding acquisition (that is, land and building)
cost, working capital, marketing expenses, escrows, operating deficit reserves,
step-in-the-shoes costs, and costs associated with syndication. However, a
developer fee of up to 20.00 percent of total development cost excluding
acquisition (that is, land and building) cost, working capital, marketing
expenses, escrows, operating deficit reserves, step-in-the-shoes costs, and
costs associated with syndication is allowed for the following types of
housing:
i. Scattered site single -family detached or duplex
housing;
ii. Projects of 25 units or less; or
iii. Supportive Housing Cycle projects.
The non-deferred portion of the developer fee shall not
exceed 8.00 percent (13.00 percent for the three types of housing referenced at
i, ii, and iii above) of total development cost excluding acquisition cost,
working capital, marketing expenses, escrows, operating deficit reserves,
step-in-the-shoes costs, and costs associated with syndication.
A developer fee of up to 4.00 percent shall be permitted for
building acquisition costs, but the non-deferred portion shall not exceed 2.00
percent. The cost of acquiring a building shall not be allowed in the
calculation of the developer fee if the acquisition is between related parties.
A related party, as used in this definition, means a relationship between
parties when there is a spousal or family relationship, parent-subsidiary
relationship, or where owners, officers, directors, partners, stockholders, or
members of one business entity hold a 10.00 percent or more interest in the
other business entity.
"Eligible basis limits" are limitations on total eligible
basis (except for projects in the Supportive Housing Cycle or those projects
that receive credits from volume cap). A project whose total eligible basis
exceeds its applicable eligible basis limit may participate in the tax credit
program; however, the maximum amount of credits allowed to the project will be
limited to the amount of the eligible basis limit applicable to the project.
The eligible basis limit is not a per se limit on eligible basis as defined in
the Code but is a mechanism that facilitates NJHMFA's exercise of its authority
to limit tax credits to what is necessary to finance projects. See Code Section
42(m). The eligible basis limits are listed in the application and may change
as market conditions dictate. For all projects receiving credits from the State
housing credit ceiling, NJHMFA shall also limit the eligible basis used for
calculating the tax credit in the following manner:
1. A maximum of three percent per annum construction loan
interest on unamortized, soft financing shall be recognized in eligible basis;
and
2. Duplicative professional costs shall not be recognized in
eligible basis. For example, for HOPE VI/Replacement Housing projects in which
both the public housing authority and the developer retain their own
construction managers, architects, engineers, etc., only the fees for services
retained by the developer shall be recognized in eligible basis.
"Equity range" means the range of tax credit pricing that
NJHMFA shall utilize in its needs analysis. The equity range is listed in the
application and may change as market conditions dictate.
"Hackensack Meadowlands District" means land subject to the
jurisdiction of the New Jersey Sports and Exposition Authority (NJSEA) pursuant
to the Hackensack Meadowlands Agency Consolidation Act,
N.J.S.A. 5:10A-1 et
seq.
"Highlands Council" means the Highlands Water Protection and
Planning Council established by section 4 of the Highlands Water Protection and
Planning Act ("Highlands Act"),
13:20-4.
"Highlands Development Credit Receiving Area" means an area
designated by the Highlands Council for the receipt of Highlands Development
Credits under the Highlands Transfer of Development Rights Program authorized
under section 13 of the Highlands Act,
13:20-13.
"Highlands Redevelopment Area" means a land area designated
as such by the Highlands Council that is a brownfields, grayfields, and/or
other previously developed area within the Highlands Region that is suitable
for development.
"Historic building(s)" means any building or buildings that
meet one or more of the following criteria:
1. Building(s) listed on the New Jersey or National Register
of Historic Places either individually or as a contributing building to a
historic district;
2. Building(s) that have been issued a Determination of
Eligibility by the Keeper of the National Register of Historic Places;
3. Building(s) identified as a contributing building to Local
Historic Districts which have been certified by the Keeper of the National
Register as substantially meeting the National Register Criteria; or
4. Building(s) with a State Historic Preservation Officer
Opinion or Certification that the property is eligible to be listed on the
National Register of Historic Places either individually or as a contributing
building to a historic district.
"HUD" means the United States Department of Housing and
Urban Development.
"Individuals and families who are homeless" means any
individual or family who does not have stable housing. In addition, depending
on the funding sources, individuals coming out of a State psychiatric hospital,
transitional living program, half-way house, jail, or a correctional facility,
with no place to live upon release may be considered homeless.
"Individuals in treatment for substance abuse" means any
individual who is a client of programs funded and/or licensed by the New Jersey
Department of Human Services, Division of Mental Health and Addiction
Services.
"Individuals with developmental disabilities" means any
individual with a severe, chronic disability that is attributable to a mental
or physical impairment or combination of mental or physical impairments, is
manifested before the person attains 22 years of age, and is likely to continue
indefinitely. The disability results in substantial functional limitations in
three or more of the following areas of major life activity: self-care,
receptive and expressive languages, learning, mobility, self-direction,
capacity for independent living, and economic sufficiency; and reflects the
person's need for a combination and sequence of special, interdisciplinary, or
generic care, treatment, or other services that are of lifelong or extended
duration and are individually planned and coordinated.
"Individuals with mental illness" means any individual with
a mental illness as that term is defined at
30:4-27.2,
incorporated herein by reference, as amended and supplemented, and/or any
individual with a mental illness eligible for housing or services funded by the
Division of Mental Health and Addiction Services in the New Jersey Department
of Human Services.
"Individuals with physical disabilities" means any
individual who, because of a physical condition, needs affordable housing with
supportive services, including assistance with three or more activities of
daily living (that is, bathing, dressing, using the toilet, eating, and getting
in or out of a bed or chair), to live independently in community
settings.
"Individuals with special needs" means:
1. Individuals with mental illness;
2. Individuals with physical disabilities;
3. Individuals with developmental disabilities;
4. Victims of domestic violence;
5. Ex-offenders and youth offenders;
6. Youth aging out of resource family care;
7. Runaway and homeless youth;
8. Individuals and families who are homeless;
9. Disabled and homeless veterans;
10. Individuals with AIDS/HIV;
11. Individuals in treatment for substance abuse; and
12. Individuals in other emerging special needs groups
identified by State agencies
"Large family unit" means a unit within a non-age-restricted
project with three or more bedrooms. For every three bedrooms, there must be at
least 1.5 bathrooms. A three-bedroom unit must measure no less than 950 square
feet. A four-bedroom unit should measure no less than 1,150 square feet.
(Excluded from the calculation are common halls, stairways, unfinished
basements and attics, garages, balconies and porches.) Developments must be
structured in conjunction with realistic market demands (that is, if a
developer's market analysis does not show a need or demand for all
three-bedroom units, the developer should not be developing all three-bedroom
units).
"LIHTC project" means a project participating in NJHMFA's
Low Income Housing Tax Credit Program.
" Low-density" means a building having one to four
residential floors or stories.
"Main Street Designated District" means a district
designated as such by DCA pursuant to the "Main Street New Jersey" program
created under
52:27D-452.a
to support economic and community development in historic commercial districts
with a long-term goal of revitalizing downtown areas. The District must be
designated by the tax credit application deadline. Only traditional or partner
designations qualify, not associate selections.
"Minimum rehab project" means any project undertaking only a
minimum amount of rehabilitation. Minimum rehab is defined as construction cost
totaling less than $ 25,000 per unit. Minimum rehab projects are eligible to
apply only in the Supportive Housing Cycle and Final Cycle. In the Final Cycle,
unless it is a preservation project, a minimum rehab project shall be funded
only if there are no other projects left to fund. NJHMFA shall utilize an
amount not less than 33.33 percent of developer fee based on building
acquisition costs as a funding source in its evaluation required under
26 U.S.C. §
42(m)(2).
"Municipal Revitalization Index" or "MRI" means the index by
which New Jersey's municipalities are ranked according to eight separate
indicators that measure diverse aspects of social, economic, physical, and
fiscal conditions. Each municipality in the State receives a composite score
and ranking, ranging from the most distressed (ranking number 1) to the least
distressed (ranking number 565). The MRI is available at
https://www.nj.gov/dca/home/MuniRevitIndex.html.
"Neighborhood Revitalization Plan" means a plan, as further
defined at N.J.A.C. 5:47-3, for the preservation or revitalization of an
eligible neighborhood.
"NJHMFA" means the New Jersey Housing and Mortgage Finance
Agency.
"Pinelands Commission" means the Pinelands Commission
created by section 4 of the Pinelands Protection Act,
13:18A-4.
"Preservation project" means an existing housing project
that is at least 50 percent occupied and is at risk of losing its affordability
controls or at risk of losing its level of affordability. In order to qualify
for the preservation set-aside, the proposal must be for the rehabilitation of
at least 75 percent of the affordable units and no new construction of units is
permitted. The application shall include the following:
1. Documentation that the property is at risk of losing its
affordability controls or level of affordability;
2. An agreement precluding the involuntary displacement of
any existing resident (other than for good cause) and, in the case of scattered
site projects, a copy of the relocation plan for over-income residents;
3. Documentation of how rents will remain at or near existing
levels;
4. Utilization of an applicable fraction based on an analysis
of both the income levels of existing residents and the market analysis
required under
5:80-33.12(c)1
ii; and
5. A capital needs assessment certified by the project
architect which illustrates that the proposed rehabilitation meets identified
critical repair items and 12-month physical needs.
"Public transportation" means any mode of transit available
to the general public with fixed fares and daily scheduled service with no
seasonal interruption. At a minimum, public transportation shall operate Monday
through Friday and provide regularly scheduled service during commuter hours
(defined as daily service at least once between 6:30 A.M. to 9:30 A.M. and at
least once between 3:00 P.M. to 6:00 P.M.
"Qualified Census Tract," as defined in Section 42(d)(5)(C)
of the Code, means a census tract designated by the Secretary of HUD in which
50 percent or more of households have an income less than 60 percent of the
area median gross income or in which there exists a poverty rate of 25 percent
or greater.
"Qualified nonprofit organization" means, pursuant to
Section 42(h)(5)(B) of the Code, an entity that owns an interest in the project
(directly or through a partnership) and materially participates (within the
meaning of Section 469(h) of the Code) in the development and operation of the
project throughout the compliance period and is not affiliated with or
controlled by a for-profit organization.
1. Section 42(h)(5)(C) defines a qualified nonprofit
organization as follows:
(i) Such organization is described in paragraph (3) or (4) of
Section 501(c) and is exempt from tax under Section 501(a);
(ii) Such organization is determined by the State housing
credit agency not to be affiliated with or controlled by a for-profit
organization; and
(iii) 1 of the exempt purposes of such organization includes
the fostering of low-income housing."
2. Section 42(h)(5)(D) describes how certain subsidiaries
meet the definition of a qualified nonprofit organization as follows:
(i) In general. For purposes of this paragraph, a qualified
nonprofit organization shall be treated as satisfying the ownership and
material participation test of subparagraph (B) if any qualified corporation in
which such organization holds stock satisfies such test.
(ii) Qualified corporation. For purposes of clause (i), the
term 'qualified corporation' means any corporation if 100 percent of the stock
of such corporation is held by 1 or more qualified nonprofit organizations at
all times during the period such corporation is in existence."
The nonprofit points are available exclusively to Section
501(c)(3) or (4) housing sponsors comprising at least 50 percent of the general
partner interest in the final ownership entity (the limited partnership).
Limited liability companies and limited liability partnerships are not eligible
for the nonprofit points.
In order to qualify for the nonprofit points, the
application shall include:
1. A fully executed Nonprofit Certification;
2. The IRS determination letter granting tax-exempt status
under Code section 501(c)(3) or 501(c)(4);
3. The by-laws or articles of incorporation of each general
partner, which clearly state that one of the exempt purposes of said
organization includes the fostering of low-income housing; and
4. If applicable, the contract establishing a turnkey
relationship or joint venture agreement that clearly defines the nonprofit's
ownership interest and participation in the development and operation of the
project.
When the project is placed in service, the owner shall be
required to provide a written legal opinion attesting that neither the
for-profit developer with a financial interest in the project nor any member of
the investor limited partner is or has been a member of the qualified nonprofit
organization's board of directors.
"Ready to grow area" means an area that has the capacity for
growth and has received recognition from the State of this capacity, either
through a planning process or through documentation that adequate water supply
and wastewater infrastructure are available to serve the project. A project
shall be considered to be in a ready to grow area if it is located within at
least one of the areas designated in 1 and 2 below by the tax credit
application deadline:
1. A smart growth area or, alternatively, an area suitable
for growth as may be defined when the State Planning Commission revises and
readopts the State Strategic Plan and adopts regulations to refine this
definition as it pertains to Statewide planning areas; and
2. An area that has the water and wastewater capacity and
infrastructure to serve the project and that also has at least one of the
features in 2i through vi below:
i. Is located within an area in need of redevelopment or an
area in need of rehabilitation, as defined at
40A:12A-3;
ii. Is located within a previously Designated Center on the
State Plan Policy Map;
iii. Is located within a municipality whose master plan has
received Plan Endorsement from the State Planning Commission and the project is
consistent with the housing element within the endorsed master plan;
iv. Contains a site with an existing building footprint
within which the project will be built;
v. Is located within a designated Highlands Redevelopment
Area, a Designated Highlands Center, or a Highlands Development Credit
Receiving Area; or
vi. Is located within an area identified for development
and/or redevelopment within the Hackensack Meadowlands District as shown on the
Hackensack Meadowlands District Official Zoning Map, as amended and
supplemented by the NJSEA.
"Redevelopment project" means a project fully located within
a "redevelopment area" or "area in need of redevelopment" or a "rehabilitation
area" or "area in need of rehabilitation," as those four terms are defined in
the Local Redevelopment and Housing Law at N.J.S.A. 40A:12A-3, or within the
boundary of an approved "neighborhood revitalization plan," as defined in the
Neighborhood Revitalization State Tax Credit Act at
N.J.S.A.
52:27D-491. No later than the application
deadline, the redevelopment plan must be adopted by the municipal governing
body or the neighborhood revitalization plan must be approved by the
Commissioner of DCA. In non-smart-growth areas only, the majority (that is,
more than 50 percent) of the property must be or have previously been covered
by structures, as that term is defined in the Municipal Land Use Law at
N.J.S.A.
40:55D-7. The project must further the goals
and objectives of the approved plan.
"Rehabilitation" or "rehab" means the repair, renovation,
alteration or reconstruction of any building or structure.
"Related party" means a relationship between parties when
there is a spousal or family relationship, parent-subsidiary relationship or
where owners, officers, directors, partners, stockholders, or members of one
business entity hold a 10 percent or more interest in the other business
entity.
"Retention factor" means an increase to the base of the
equity range used to calculate the value of the tax credits. NJHMFA will add a
retention factor to non-syndicated tax credit projects, or projects where the
general partner (and/or related entity) will retain at least 2.00 percent
ownership interest. For projects where the general partner's ownership interest
is between 2.01 and 5.00 percent, $.05 shall be added to the base of the equity
range. If the general partner's ownership interest is 5.01 to 49.99 percent, $
0.10 shall be added to the base of the equity range. If the general partner's
ownership interest is at least 50.00 percent, $ 0.20 shall be added to the base
of the equity range.
"Scattered site project" means a project that consists of
buildings which are not all proximate to one another, is financed pursuant to a
common financing plan and 100 percent of the residential rental units of which
are rent-restricted within the meaning of section 42(g)(2) of the Code.
"Senior project" means "housing for older persons" as
defined in Section 807(b)(2) of the Fair Housing Act,
42 U.S.C. §
3607, as it may be amended. In order to be
eligible for the Senior Cycle, the project must meet one of the three
categories of exempt "housing for older persons" as defined by the Fair Housing
Act:
1. At least 80 percent of the occupied units in the building
are each occupied by at least one person 55 years or older and the property
must be clearly intended for older persons as evidenced by policies and
procedures that demonstrate the intent that the property be housing for older
persons (55+);
2. All the residents are 62 or older; or
3. Housing that the Secretary of HUD has designated as
housing for older persons.
The familial status provisions of the Fair Housing Act
prohibit discrimination against households with children under 18. This
protection extends to pregnant women, foster families, legal guardians, and
those in the process of obtaining guardianship of or of adopting minor
children. The only exception to this prohibition against discrimination based
on familial status is for property that qualifies under a Fair Housing Act
exemption as "housing for older persons."
Refusing to rent to households with children is allowed
under the exemption for housing for older persons as long as the age
restrictions are met. Accordingly, in these properties, managers must verify
the age of residents. Age verification documentation must be available on site;
failure may lead to a loss of the exemption. For questions about whether a
property qualifies for the exemption as housing for older persons, a fair
housing attorney or other fair housing professional should be consulted.
"Services for Independent Living (SIL) Program" means a
program established at NJHMFA to enhance the quality of life for residents
living in NJHMFA-financed senior housing developments.
"Smart growth areas" means areas that promote growth in
compact forms and protect the character of existing stable communities. A
compact form of development combines an efficient use of land, natural
resources, and public services. An area shall be considered to be a smart
growth area if it is within Planning Area 1, Planning Area 2, or within a
Designated Center on the State Plan Policy Map. In the Pinelands Area, an area
shall be considered to be a smart growth area if it is within a Regional Growth
Area, a Pinelands Village, or a Pinelands Town.
For more information on whether a project is located within a
smart growth area, visit the site evaluator website at
https://njgin.state.nj.us/OIT_BusinessMap2/index.html
or contact NJHMFA.
"Social service coordinator" means a person who is
responsible for linking the residents of a tax credit property to appropriate
supportive services. The major functions of the social service coordinator
include, but are not limited to:
1. Providing case management services to the residents and/or
providing linkages to community resources by providing a signed agreement
between the parties;
2. Providing information and referrals to residents on
programs and resources on local, State and Federal levels;
3. Interviewing and screening residents for eligibility for
programs and entitlements and assisting with application procedures;
4. Assessing the needs of residents, including physical,
mental, social and financial needs, and developing a plan for service
delivery;
5. Monitoring and evaluating service delivery, and
reassessing as necessary;
6. Establishing links with agencies and service
providers;
7. Serving as residents' advocate/liaison; and
8. Planning and implementing monthly programs and activities
to meet the needs of residents, including establishment of social, educational
and recreational programs.
"Social services plan" means a description of the scope of
social and support services to be provided for supportive housing projects,
including a staffing plan and how the services will be delivered and funded.
The services must be affordable and appropriate to the target population to the
satisfaction of NJHMFA, available and accessible to the project's tenants, and
the social service provider must have the capacity to perform such services.
The social services plan must address the target population's(s') support
service needs and may include a range of services across a wide continuum of
care and intensity appropriate to the target population(s). Appropriate and
needed services must be supported by evidence-based practice, research, and/or
direct practice experience. Each special needs tenant does not have to utilize
all of the services provided by the project; however, the services must be
available. The social services plan shall address, but is not limited to, the
following items:
1. Hiring a social service coordinator. If a social service
coordinator is being provided through a third party, then a signed agreement
between the two parties is required, and the coordinator must be dedicated to
the tax credit project for a reasonable amount of hours based on the number of
supportive housing units in the project (generally 20 hours per week). For
projects that have set aside five percent of the units for supportive housing
units, a minimum of five hours per week is required (at least 10 hours per week
is recommended);
2. A description of the targeted population(s), including
criteria which will qualify proposed tenants for the supportive housing units
and expected support services that are likely to be required;
3. A description of the proposed services, including how
services respond to need areas of tenants, how services will be funded, and
service location (on site or in the community);
4. A description of how services will be coordinated or made
available to all special need tenants, including a listing of referral sources;
and
5. A description of tenant/landlord relationships, including
roles of the service provider and developer in tenant/landlord relationships,
how prospective tenants will be recruited, screened, and selected, and the plan
for problem resolution to minimize evictions for supportive housing tenants.
Social service coordinator, case manager and linkages
coordinator/provider are not counted as separate and distinct services. NJHMFA
shall view these services as all being part of the same service.
"Sponsor-based rental assistance" means rental assistance
that is provided to a sponsor from the HUD McKinney-Vento Programs or other
government sources.
"Sponsor certification" means the certification signed by
the developer(s), applicant(s) and general partner(s) submitted at application,
reapplication, carryover request or IRS Form 8609 request which identifies the
anticipated or actual date that the project is placed in service. The
certification shall also include a signed breakdown of costs and basis and a
statement whereby the owner agrees to abide by the low income housing tax
credit requirements of the Code and a statement, under penalty of perjury, that
the information contained in the certification is true and complete.
"Start construction" means to issue a notice to proceed to a
project's contractor, mobilize equipment on the site, and physically commence
construction/site work. It is the responsibility of the developer and
contractor to ensure that all applicable local and State permits, Federal
approvals, inspections, surveys and/or reports have been received before work
has commenced. NJHMFA reserves the right to conduct a site inspection to ensure
the timely start of construction.
"State Planning Commission" means the New Jersey State
Planning Commission established in the executive branch of State Government
pursuant to
52:18A-197.
"Substantially incomplete" means an application with a total
of three or more defects as described at
5:80-33.11(c)1
and 3 or an application with a total of six or more defects as described at
5:80-33.11(c)1, 2
and 3. An application deemed to be substantially incomplete is not eligible for
the 48-hour period to cure such defects under
5:80-33.11(c).
"Supplemental award" means an award of credits from the
Reserve in order to fund the final eligible project awarded credits in a cycle
if there are insufficient credits in the cycle to provide a full reservation
for the project. Applicants do not apply for supplemental awards.
"Supportive housing population needs analysis" means a needs
analysis conducted by the applicant and/or social services provider that
demonstrates the current and projected need and demand for housing for the
targeted population(s). A supportive housing population needs analysis shall
address the following:
1. The scope of the current and 15-year projected need of the
target population(s) for supportive housing;
2. Define the market area, including sources of referrals for
supportive housing;
3. Current and estimated population needs assessment for the
defined market area. Applicants can obtain this information from Federal, State
and local agencies and sources;
4. The estimated time it will take to fill the units;
5. The estimated income and sources of income for the target
population(s); and
6. he number of supportive housing and other types of
designated housing serving the target population(s) in the defined market area.
"Supportive housing project" means a project that shall rent
a minimum of 25.00 percent of the total project units to individuals with
special needs. At a minimum, a supportive housing project must have a social
service coordinator and a social services plan that addresses the needs of the
identified special needs population. If a social service coordinator is being
provided through a third party, then a signed agreement between the two parties
is required and the coordinator must be dedicated to the tax credit project for
at least 20 hours per week. Special needs populations include individuals and
families who are in need of certain types of homes and/or community-based
supportive services, usually on an ongoing basis, in order to remain capable of
independent living in communities. Supportive services range across a wide
continuum of care (such as meal preparation, assistance with housecleaning,
etc.) to high level (such as substance abuse and mental health supports) to
medically intense (such as skilled nursing) and will vary from person to person
depending on their particular physical, psycho-social, and/or mental
limitations, and may vary for one person over time. Each special needs tenant
does not have to utilize all of the services provided by the project; however,
the services must be available. If tenants are not utilizing the services that
are available, NJHMFA may call into question whether or not the project is
serving a special needs population.
Examples of supportive services include, but are not limited
to, the following:
1. Social service coordinator/case manager;
2. Counseling and crisis intervention;
3. Health care advocacy and linkages;
4. Assistance with activities of daily living and/or
instrumental activities of daily living;
5. Entitlement counseling and advocacy;
6. Employment counseling and training;
7. Home-based personal or medical assistance;
8. Skilled nursing;
9. Meals preparation;
10. Housekeeping;
11. Substance abuse and mental health supports; and
12. Child care/adult day care.
"Supportive housing unit" means a unit within a project that
is rented to an individual with special needs, with a social service
coordinator, a supportive services plan that addresses the needs of the
identified special needs population and the provision of supportive services,
just as with supportive housing projects, as defined above in this
section.
"Targeted Urban Municipalities" or "TUMs" means those urban
municipalities ranked and designated by the following factors: Department of
Community Affairs (DCA) Municipal Revitalization Index, housing density,
population, and employment-to-housing ratio. NJHMFA shall publish annually a
list of municipalities that are designated as TUMs.
"Total development cost" or "total project cost" means the
cost to complete the development of a proposed project.
"Transit oriented development" or "TOD" means a mixed use
development within walking distance (1/2 mile) of a rail, light rail, subway,
ferry or major bus corridor station.
"Transit village" means a community served by bus, train,
light rail, or ferry that has been designated as such by the State's Transit
Village Task Force pursuant to criteria available at
http://www.state.nj.us/transportation/community/village/criteria.shtm.
The transit village program is designed to spur economic development, urban
revitalization, and private-sector investment using access to transit as an
asset. The New Jersey Department of Transportation coordinates the Task Force
composed of various State agencies, which review municipal applications and
make recommendations. Transit villages must be designated by the tax credit
application deadline.
"Uncorrected noncompliance" means any one of the following
which was reported to the owner by NJHMFA. With respect to the point category
only, this refers to noncompliance that remains uncorrected as of the date of
the tax credit application deadline or the correction date set forth in the
formal notice of non-compliance, whichever occurs later:
1. A violation of State and local building codes or health
ordinances;
2. Failure of one or more major systems (for example, roof,
HVAC, elevators, plumbing and electric);
3. Failure to fulfill any Qualified Allocation Plan
provisions as represented by an owner in a project's New Jersey LIHTC
application; or
4. Failure of the owner to complete and fully execute the
Deed of Easement and Restrictive Covenant for Extended Low-Income Occupancy.
Owners shall be notified of the noncompliance by either a
formal notice of noncompliance or by the non-issuance of the IRS Form
8609.
"Urban transit hub" means a property defined and designated
as such by the New Jersey Economic Development Authority pursuant to the Urban
Transit Hub Tax Credit Act,
34:1B-207
et seq.
