This bill empowers the New Jersey Housing and Mortgage Finance Agency (HMFA) to auction off $400 million in tax credits specifically aimed at supporting middle-income workforce housing. The HMFA is required to conduct these auctions competitively, ensuring that no credits are sold for less than 85% of their value and capping annual sales at $75 million. The proceeds from these auctions will be allocated to financial assistance for housing initiatives targeting households earning between 80% and 120% of the median gross income for their region. The bill also reallocates tax credits from the Community-Anchored Development Program and Cultural Arts Incentives Program to facilitate this initiative.

Furthermore, the bill introduces new provisions that expand the eligible programs for tax credit purchases and establishes an overall cap of $11.5 billion on the total value of tax credits awarded over a nine-year period, which includes $2.5 billion reserved for transformative projects under the Aspire Program. It outlines the process for tax credit purchasers, requiring them to enter into contracts with the HMFA and stipulating conditions for the transfer of credits. The HMFA is authorized to utilize the auction proceeds for both existing and new programs focused on developing middle-income workforce housing, thereby addressing critical housing needs in proximity to public transportation and job opportunities.

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