This bill empowers the New Jersey Housing and Mortgage Finance Agency (HMFA) to conduct tax credit auctions to support middle-income workforce housing, reallocating $400 million in tax credits from the Community-Anchored Development Program and Cultural Arts Incentives Program. The HMFA is required to sell these tax credits through competitive auctions, ensuring they are sold for at least 85% of their value, with an annual sales cap of $75 million. The proceeds from these auctions will be directed towards financial assistance for housing aimed at households earning between 80% and 120% of the median gross household income for their region.

In addition to establishing the auction process, the bill modifies existing tax credit programs by updating statutory language and structure, including the introduction of new sections that detail the distribution of funds. It also allows for the transfer of tax credits under specific conditions, mandating that 10% of proceeds from any sale of a tax credit transfer certificate be remitted to the state’s General Fund. The HMFA is further authorized to utilize auction proceeds to support existing programs or create new initiatives focused on middle-income workforce housing, with the regulatory framework for these changes set to take effect immediately upon passage.

Statutes affected:
Introduced: 52:18A-263, 34:1B-362