N.J. Admin. Code § 5:80-33.34 - NJHMFA review and inspection

(a) Prior to the issuance of the IRS Form 8609, NJHMFA (or its authorized designee) may conduct an on-site inspection of the project to confirm that all representations made in the project's tax credit application have been met. (See N.J.A.C. 5:80-33.26.) NJHMFA (or its authorized designee) shall perform its first inspection of the project no later than the end of the second calendar year following the year the last building in the project is placed in service. NJHMFA also reserves the right to perform an on-site inspection of any low-income housing project through the end of the extended use period and to have access to all books and records that would document compliance.

(b) On an annual basis, owners of at least 33.33 percent of all tax credit projects shall submit to NJHMFA for compliance review the following information for a minimum of 20 percent of all low-income units (units shall be identified by NJHMFA):

1. A copy of the annual income certification for the household;

2. The documentation the owner has received to support the certification; and

3. The rent record.

(c) NJHMFA (or its authorized designee) shall also, on an annual basis, select 33.33 percent of all tax credit developments and perform physical inspections of the low-income units corresponding to (b) above to determine suitability for occupancy, taking into account State and local health, safety, and building codes. NJHMFA (or its authorized designee) shall also perform physical inspections of every building and every vacant unit in the development. If NJHMFA (or its authorized designee) determines a violation(s) exist(s) that could render a building unsuitable for occupancy, such violation may be considered an issue of non-compliance, which must be reported to the Internal Revenue Service. The owner shall be given a reasonable period of time within which to correct the violation(s). At the end of the correction period, NJHMFA shall notify the IRS whether the owner has or has not corrected the violation(s). Such violation(s) may also be reported for appropriate action to the Division of Codes and Standards, Bureau of Housing Inspection in DCA.

(d) NJHMFA shall select projects that will undergo NJHMFA review and give owners reasonable notice that their project has been chosen, as well as identify documents that will need to be made available. Reviews may occur more frequently than on a 12-month basis, provided that all months within each 12-month period are subject to certification. The method of choosing the sample files or units to be inspected will not give the owner advance notice of which units and tenant records are to be inspected and reviewed.

Notes

N.J. Admin. Code § 5:80-33.34

Recodified from N.J.A.C. 5:80-33.33 by R.1998 d.279, effective 6/1/1998.
See: 30 N.J.R. 1132(a), 30 N.J.R. 1978(a).
Recodified from N.J.A.C. 5:80-33.38 and amended by R.1999 d.120, effective 4/5/1999.
See: 31 N.J.R. 122(a), 31 N.J.R. 860(a).
Rewrote the section. Former N.J.A.C. 5:80-33.36, NJHMFA review, recodified to N.J.A.C. 5:80-33.34.
Amended by R.2001 d.170, effective 5/21/2001.
See: 33 N.J.R. 932(a), 33 N.J.R. 1573(b).
In first sentence, substituted "may" for "shall" and changed N.J.A.C. reference; and inserted the second sentence.
Amended by R.2002 d.233, effective 7/15/2002.
See: 34 N.J.R. 1574(a), 34 N.J.R. 2417(a).
Rewrote the section.
Recodified from N.J.A.C. 5:80-33.36 and amended by R.2003 d.300, effective 7/21/2003.
See: 35 N.J.R. 1616(a), 35 N.J.R. 3298(b).
In (a), amended N.J.A.C. reference. Former N.J.A.C. 5:80-33.34, Compliance monitoring, recodified to N.J.A.C. 5:80-33.32.
Amended by R.2006 d.112, effective 3/20/2006.
See: 37 N.J.R. 3879(a), 38 N.J.R. 1432(a).
In (c), substituted "may" for "shall".
Amended by R.2008 d.133, effective 5/19/2008.
See: 40 N.J.R. 839(a), 40 N.J.R. 2429(b).
In (a), deleted "at least" preceding "through" and substituted "extended use" for "compliance"; and in (c), inserted "and every vacant unit".
Amended by R.2011 d.239, effective 9/6/2011.
See: 43 N.J.R. 917(a), 43 N.J.R. 2293(a).
In (d), substituted "made available" for "submitted", and inserted the last sentence.
Amended by R.2013 d.086, effective 6/17/2013.
See: 45 N.J.R. 530(a), 45 N.J.R. 1511(a).
In the introductory paragraph of (b) and in (c), substituted "33.33" for "33"; in (c), inserted a comma following "safety", and substituted "DCA" for "the New Jersey Department of Community Affairs". Amended by 56 N.J.R. 343(b), effective 3/4/2024