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The New Jersey Housing and Mortgage Finance Agency (HMFA) announced the creation of a new Affordable Housing Production Fund to assist developers with gaps in financing for 100 percent affordable housing projects. Applications will be accepted on a rolling basis beginning on November 1, 2022.
The Fund consists of $305 million appropriated in New Jersey's 2023 fiscal year budget. This money was allocated to New Jersey as part of the federal American Rescue Plan Act of 2021. Under the new HMFA program, the Fund offers financing to complete 100 percent affordable housing projects that were included in a court-approved Mount Laurel Fair Share Settlement Agreement with a municipality.
Projects that use or will use 4 percent low-income housing tax credits (LIHTCs) and/or tax-exempt bond financing from HMFA are eligible for Fund financing. Some of the eligibility requirements include setting aside the greater of five units or 5 percent of the total project units for "supportive housing." The affordability restrictions on the project must remain for 45 years, including a 30-year compliance period and a 15-year extended use period. Both family and senior residential projects are eligible.
For projects that qualify and are approved, developers will receive an award of $150,000 per unit, up to a maximum of $8 million per project. This financing will come in the form of construction loans, construction loans that convert to permanent financing and permanent-only loans. Zero percent interest applies to loans provided through the Fund during construction, and loans provided during permanent financing will bear 1% interest, compounded annually. Like other HMFA programs, projects receiving construction financing through the Fund are eligible for exemption from sales tax on materials or supplies used in the project.
Day Pitney's real estate and land use professionals are experienced in a broad range of HMFA programs and stand ready to assist clients in preparing applications for the Fund before the application period begins on November 1. If you or a developer you know are interested in applying or learning more about the Fund, contact us today.
Day Pitney is featured in Law360 Real Estate Authority “Property Plays” column for it work on the sale of Merck Dohme’s 108-acre Kenilworth, New Jersey headquarters to Onyx Equities LLC and Machine Investment Group.
Day Pitney Partners Gretchen Blauvelt-Marquez, Michael Fitzpatrick, James Leva, Nicole Magdiziak and Thomas O'Mullane's promotion to partnership and Partner Todd Terhune's arrival to the firm were featured in the New Jersey Law Journal's New Partners Yearbook 2023.
Day Pitney LLP successfully represented Merck Sharp & Dohme LLC (Merck) in connection with the sale of its ~108-acre campus in Kenilworth, New Jersey, to a joint venture between Onyx Equities LLC, and Machine Investment Group.
Day Pitney Attorney Amanda G. Gomez recently was one of the coaches of the St. Thomas University College of Law Trial Team that placed third in the National Phi Alpha Delta Mock Trial Competition held at the Hilton Arlington in Arlington, VA.
Day Pitney Florida Real Estate practice chair Daniel Diaz Leyva and Attorney Amanda Gomez's arrival was featured in ConnectCRE's Career Move Roundup – Florida column. Both joined our Miami office.
Day Pitney Partner Brian E. Thompson's promotion to partner and the arrival of Daniel Diaz Leyva and Amanda G. Gomez to the firm were featured in Florida Bar News' On the Move column.
Day Pitney Daniel Diaz Leyva's arrival was featured in The Real Deal's Movers & Shakers column. Diaz Leyva, chair of the firm's Florida Real Estate practice, joined the firm's Miami office, along with Attorney Amanda Gomez, and paralegals Ana Siddiqui, Ana Laura Garcia, and Dayleen Anchia.