New Jersey Future Redevelopment Forum

Affordable Housing Discussion

Anthony L. Marchetta, Executive DirectorNew Jersey Housing & Mortgage Finance Agency

March 10, 2017

About NJHMFA

Independent state agency in but not of the New Jersey Department of Community Affairs

Mission is to finance safe, decent, affordable housing•Secures funding through the sale of taxable and

tax-exempt bonds •Secures income from fees and investments

Administers the federal Low Income Housing Tax Credit program •Single largest source of equity for affordable rental projects

Unique Agency in New Jersey – Direct Lender •Balance sheet in excess of $4 Billion

No reliance on the state for budget and operating funds

HMFA Statewide Investment: 2010 – Present

• 21,411 Multifamily Rental Units – nearly all affordable

• 1,825 Special Needs Beds

• 940 Single Family Homeownership Units

• 6,166 Single family mortgages

• 30,342 Housing Opportunities Funded through HMFA

Alexander Hamilton, Phase III, PatersonPennrose

Multifamily FinancingLoan Options:

• Construction only*

• Construction/Permanent*

• Permanent Take-Out*HMFA Construction financing requires payment of

prevailing or Davis-Bacon wages and exemption from NJ sales tax.

Financing made available through the sale of tax-exempt and/or taxable bonds:

• Tax-exempt bonds are eligible for 4% tax credits

• Taxable bonds can be used with the 9% tax credits

Gregory School Apartments, Long BranchConifer

MF Conduit Bond Program

•HMFA Issues Bonds on a “Pass Through” Basis• Traditional loan - or - • Back to Back

•Most Projects Qualify for 4% LIHTC, however limited volume cap available at this time.

•To date, (Since 2011 Q4), the program has provided more than $1 Billion in Conduit Bonds to preserve and construct more than 9,200 units.

The Aspire, New BrunswickBoraie Development

Federal Low Income Housing Tax Credit Program (LIHTC)

• Federal tax incentive to encourage the development of affordable rental housing

• One of the most successful housing production programs ever created

• Dollar for dollar reduction in federal income tax liability for a 10-year period

• Provides 70 percent (9% competitive credits) or 30 percent (4% credits) of the project funding

• HMFA receives approximately $20 million in annual credits which generates $180 million in equity

Linc at Orange Station, OrangeRPM Development

2017 9% LIHTC TIMELINE

May 2, 2017: Application Deadline - Family, Senior, Supportive Housing Cycle

May 29, 2017: Application Deadline – Mixed Income Reserve Applications

July 28, 2017: Awards for Family. Senior and Supportive (Estimated) Housing Cycle, & Mixed Income Reserve

Special Needs HousingSpecial Needs Housing Partnership Loan Program

(SNHPLP)

• $34 million special needs housing program created in June 2011

• Partnership funded by NJHMFA, NJDCA, NJDHS, and municipalities

• Municipalities leverage Municipal Affordable Housing Trust Funds

• Creates permanent supportive housing for individuals with developmental disabilities• Ranch style homes w/4-6 bedrooms

• Funding nearly exhausted. Additional Program Funding Needed.

Vernon Court, Wayne

Hiawatha Blvd., Parsippany Troy-Hills

Special Needs HousingMoney Follows The Person Housing Partnership Program

(MFPHPP)

• $2.8 million partnership between the NJHMFA and the NJDHS, Division of Aging Services.

• Capital subsidy of up to $75,000 for eligible developers to set aside units for qualified individuals transitioning from nursing facilities into community settings.

• Projects with more than 25% set aside special needs units are not eligible

• Anticipating be able to fund 37 units through the program.

• Section 811 Project Rental Assistance can be leveraged with this program.

Moving Forward

How will we meet the needs of the future?

Thank You!

Questions?

Anthony L. MarchettaExecutive Director

New Jersey Housing and Mortgage Finance Agency

www.njhousing.gov