14B — September 15 - 28, 2017 — New Jersey — M id A tlantic
Real Estate Journal
www.marejournal.com
N ew J ersey By Anthony L. Marchetta, New Jersey Housing and Mortgage Finance Agency View from the top: Low Income Housing Tax Credits help boost affordable homes in high-opportunity areas K ilmer Homes, which occupies a portion of former Camp Kilmer benefits against their federal tax liability.
HTC programs. One of its most effective features is each state’s ability to craft its own alloca- tion plan defining the criteria for awarding tax credits. The LIHTC programdefines this as- pect as the Qualified Allocation Plan (QAP). In 2013, NJHMFA made comprehensive changes in its QAP to guide affordable housing growth and increase opportunities for residents to assist them in building their personal equity. In evaluating project applica- tions, three critical elements are now given priority: • Is the project near a job cen- ter, meaning within a munici- pality with public and private sector jobs totaling at least 95 percent of the housing units? • Is it within a half-mile of public transportation? • Lastly, is the project in an area with proficient schools? These key changes helped shift the awards of projects to deconcentrate poverty and greater emphasize high-oppor- tunity areas. A recent study by New Jer- sey Future, which compared projects awarded before and after the changes, found that NJHMFA’s revisions “have had a substantial positive effect in steering new lower-income housing away from neighbor- hoods already experiencing high concentrations of poverty and toward areas that provide better opportunities for lower- income households to improve their economic circumstances.” An article accompanying the report’s release noted that the changes could “serve as a model for other states interested in similarly directing their al- location of affordable-housing tax credits. Reports by HUD and the Joint Center for Housing Stud- ies at Harvard University also recognized the state’s efforts to utilize its allocation plan as a tool to decrease economic segregation through housing location. These studies are indications that NJHMFA’s actions are having an impact. Our neigh- borhoods, like our residents, should reflect a diversity of housing. The steps NJHMFA has taken to broaden the im- pact of using LIHTCs as a development tool to create affordable housing across the state have opened the door to thousands of residents, not only improving their lives, but the greater community as well. n
rental homes also for families. Key to both developments’ construction financing was the award of the very competitive 9 percent federal Low Income Housing Tax Credits (LIHTC) by the New Jersey Housing and Mortgage Finance Agency (NJHMFA). The most success- ful federal affordable housing program in history, LIHTCs provide a 10-year tax incentive to encourage the development of affordable rental housing for low- and moderate-income households. The award of $39.8 million in the new round of tax credits
represents the single largest announcement of LIHTCs since the program began in the state, and will add nearly 2,200 units within 29 projects to provide much needed affordable hous- ing in 14 counties. The LIHTC program, estab- lished in 1986, is the largest source of funding for affordable housing in the country. The pro- gram awards federal tax credits to affordable housing develop- ers, which are typically sold to private investors to generate equity for construction funding. In return, the investors receive 10 years of tax credits and other
Since 2010, more than $246 million in 9% and non-compet- itive 4% LIHTCs have been awarded. This represents near- ly 25,000 units of affordable housing created or rehabili- tated for families, seniors and special needs residents, includ- ing 600 units set aside for the homeless or homeless veterans, and an economic investment of over $2.5 billion in New Jer- sey’s housing and construction industries. New Jersey has one of the country’s most innovative LI-
in Edison, is a community of 120 afford- able rental h ome s f o r working fam- ilies, includ- ing support- ive housing for homeless families.
Anthony Marchetta
Further north, a new de- velopment in North Caldwell proposes to build 50 of some of the borough’s first affordable
2017 GOVERNOR’S CONFERENCE ON HOUSING AND ECONOMIC DEVELOPMENT
JOIN us october 5-6! FEATURING Keynote speaker avi telyas founder, makerhoods.org OCTOBER 5-6, 2017 • Waterfront conference center at Harrah’s resort Atlantic City
ENGAGING SESSIONS WITH CONTINUING EDUCATION CREDITS Session topics include Property Management, Economic and Community Development, People First and Effective Approaches for Community Building. • NAHMA MEMBERS: Earn continuing education credits for all sessions within the Property Management track. • PROFESSIONAL PLANNERS: EarnAICP Certification Maintenance (CM) credits for select sessions throughout the conference - including our keynote speech andAtlantic City bus tour! MULTIPLE BUSINESS 2017’s conference is hosted by: A vi Telyas is an American real estate developer, serial entrepreneur, and pioneer in lean manufacturing and large-scale modular construction. His passion for architecture and craft entrepreneurship has led him to found Makerhoods.org , an organization which advocates for urban land use policies that foster self-employment and self-sufficiency through affordable working and living space.
NETWORKING OPPORTUNITIES Connect with colleagues, partners, and potential clients from around the state during the trade show, our delicious breakfasts, luncheons, desserts, and Thursday evening’s networking reception.
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DEPARTMENT OF
New Jersey Housing and Mortgage Finance Agency www.njhousing.gov
CA
Community AFFAIRS
www.njhousingconference.com
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