This bill empowers the New Jersey Housing and Mortgage Finance Agency (HMFA) to auction $400 million in tax credits specifically aimed at financing middle-income workforce housing. The legislation amends existing laws to facilitate these auctions, ensuring that the credits are sold at no less than 85% of their value and capping annual sales at $75 million. The proceeds from these auctions are designated for the development of housing for households earning between 80% and 120% of the median gross household income in their respective regions. Additionally, the bill reallocates tax credits from the Community-Anchored Development Program and Cultural Arts Incentives Program to support this initiative.

Furthermore, the bill sets an overall cap of $11.5 billion on tax credits awarded across various programs over a nine-year period, with specific allocations for transformative projects. It introduces limitations on the annual value of tax credits under different programs and specifies that tax credits for the "New Jersey Community-Anchored Development Act" will not be available until January 1, 2026. The HMFA is also granted the authority to transfer tax credits among purchasers, with conditions on sale prices and subsequent transfers, thereby enhancing the flexibility and effectiveness of the tax credit system to meet the housing needs of middle-income families in New Jersey.

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