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NJ Future Redevelopment Forum 2017 Marchetta


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How Will We Generate New Affordable Housing?

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NJ Future Redevelopment Forum 2017 Marchetta

  1. 1. New Jersey Future Redevelopment Forum Affordable Housing Discussion Anthony L. Marchetta, Executive Director New Jersey Housing & Mortgage Finance Agency March 10, 2017
  2. 2. About NJHMFA Independent state agency in but not of the New Jersey Department of Community Affairs Mission is to finance safe, decent, affordable housing •Secures funding through the sale of taxable and tax-exempt bonds •Secures income from fees and investments Administers the federal Low Income Housing Tax Credit program •Single largest source of equity for affordable rental projects Unique Agency in New Jersey – Direct Lender •Balance sheet in excess of $4 Billion No reliance on the state for budget and operating funds
  3. 3. HMFA Statewide Investment: 2010 – Present • 21,411 Multifamily Rental Units – nearly all affordable • 1,825 Special Needs Beds • 940 Single Family Homeownership Units • 6,166 Single family mortgages • 30,342 Housing Opportunities Funded through HMFA Alexander Hamilton, Phase III, Paterson Pennrose
  4. 4. Multifamily Financing Loan Options: • Construction only* • Construction/Permanent* • Permanent Take-Out *HMFA Construction financing requires payment of prevailing or Davis-Bacon wages and exemption from NJ sales tax. Financing made available through the sale of tax-exempt and/or taxable bonds: • Tax-exempt bonds are eligible for 4% tax credits • Taxable bonds can be used with the 9% tax credits Gregory School Apartments, Long Branch Conifer
  5. 5. MF Conduit Bond Program •HMFA Issues Bonds on a “Pass Through” Basis • Traditional loan - or - • Back to Back •Most Projects Qualify for 4% LIHTC, however limited volume cap available at this time. •To date, (Since 2011 Q4), the program has provided more than $1 Billion in Conduit Bonds to preserve and construct more than 9,200 units. The Aspire, New Brunswick Boraie Development
  6. 6. Federal Low Income Housing Tax Credit Program (LIHTC) • Federal tax incentive to encourage the development of affordable rental housing • One of the most successful housing production programs ever created • Dollar for dollar reduction in federal income tax liability for a 10-year period • Provides 70 percent (9% competitive credits) or 30 percent (4% credits) of the project funding • HMFA receives approximately $20 million in annual credits which generates $180 million in equity Linc at Orange Station, Orange RPM Development 2017 9% LIHTC TIMELINE May 2, 2017: Application Deadline - Family, Senior, Supportive Housing Cycle May 29, 2017: Application Deadline – Mixed Income Reserve Applications July 28, 2017: Awards for Family. Senior and Supportive (Estimated) Housing Cycle, & Mixed Income Reserve
  7. 7. Special Needs Housing Special Needs Housing Partnership Loan Program (SNHPLP) • $34 million special needs housing program created in June 2011 • Partnership funded by NJHMFA, NJDCA, NJDHS, and municipalities • Municipalities leverage Municipal Affordable Housing Trust Funds • Creates permanent supportive housing for individuals with developmental disabilities • Ranch style homes w/4-6 bedrooms • Funding nearly exhausted. Additional Program Funding Needed. Vernon Court, Wayne Hiawatha Blvd., Parsippany Troy-Hills
  8. 8. Special Needs Housing Money Follows The Person Housing Partnership Program (MFPHPP) • $2.8 million partnership between the NJHMFA and the NJDHS, Division of Aging Services. • Capital subsidy of up to $75,000 for eligible developers to set aside units for qualified individuals transitioning from nursing facilities into community settings. • Projects with more than 25% set aside special needs units are not eligible • Anticipating be able to fund 37 units through the program. • Section 811 Project Rental Assistance can be leveraged with this program.
  9. 9. Moving Forward How will we meet the needs of the future?
  10. 10. Thank You! Questions? Anthony L. Marchetta Executive Director New Jersey Housing and Mortgage Finance Agency