NJ Tax Credit Awards to Seed 1,200 New Affordable Multifamily Units

TRENTON—The New Jersey Housing and Mortgage Finance Agency reports it has awarded more than $22 million in federal tax credits that will help create more than 1,200 new affordable apartments for families, seniors and residents with special needs throughout the Garden State.

The annual 9% federal Low-Income Housing Tax Credits are expected to generate $214.7 million in private investment to create 17 projects totaling nearly $325 million in total development investment.

The 2019 awards were administrated under new, innovative guidelines, will create apartments for families in Closter, veterans in East Greenwich and seniors in Branchburg, among other projects. The new guidelines place greater emphasis on locating housing in areas providing children access to good school systems; creating on-site services, such as nurses and health-related programs, in senior housing to enable them to remain in their community and renewed emphasis on mixed-income development to avoid segregating low- and moderate-income housing, state officials noted.

Under the administration of Gov. Phil Murphy to date, NJHMFA has financed or awarded tax credits toward the creation or rehabilitation of more than 6,400 affordable apartments across the state, including more than 330 special needs beds, and an additional 440 market-rate apartments with a total development cost of $1.45 billion.

The tax credit award breakdown includes nine family projects (678 units) received more than $12.7 million in tax credits that will involve $121.7 million in tax credit equity and more than $189 million in total development cost.

A total of five senior-oriented projects (378 units) received more than $6.4 million in tax credits that will involve approximately $62 million in tax credit equity and nearly $87 million in total development cost.

The supportive housing sector saw two projects (133 units) secured approximately $2.8 million in tax credits that will involve approximately $26.2 million in tax credit equity and nearly $39 million in total development cost.

One mixed-income development (32 units) received $510,000 in tax credits that will involve $4.8 million in tax credit equity and nearly $9.7 million in total development cost.

Since the inception of the LIHTC program, more than 59,000 apartments have been created in New Jersey.