This bill amends Section 98 of P.L.2020, c.156 to empower the New Jersey Housing and Mortgage Finance Agency (HMFA) to issue tax credits specifically for housing projects that qualify for low-income housing tax credits. It establishes an overall cap of $11.5 billion for tax credits across various programs over a nine-year period, with $2.5 billion earmarked for transformative projects under the Aspire Program. The bill also sets annual limits for tax credits and allows for the reallocation of uncommitted tax credits to the HMFA for housing projects, thereby enhancing the financial support available for affordable housing development in New Jersey.

Furthermore, the bill introduces project financing tax credits for developers of qualified housing projects that demonstrate a financing gap, supplementing previously awarded four-percent low-income housing tax credits. The HMFA is authorized to award these credits through existing or new programs, with the total tax credit not exceeding the lesser of the amount needed to achieve a nine-percent LIHTC equivalent or the demonstrated financing gap. Additionally, any uncommitted tax credits from the New Jersey Economic Development Authority (EDA) under the Community-Anchored Development Program will be reallocated to the HMFA annually, ensuring that resources are effectively utilized to support affordable housing initiatives.

Statutes affected:
Introduced: 34:1B-362