Public Notice and Summary
of
New Jersey’s Proposed 2017 National Housing Trust Fund Allocation Plan

July 10, 2017

 

The State of New Jersey is developing its FFY 2017 Annual Action Plan and 2017 National Housing Trust Fund (NHTF) Allocation Plan. The NHTF allocation plan outlines how the State will distribute its NHTF funding from the U.S. Department of Housing and Urban Development (HUD) for the next fiscal year (July 1, 2017 thru June 30, 2018) and for the remainder of the 5 year FFY 2015-2019 Consolidated Plan period (July 1, 2017 thru June 30, 2019). The NHTF program will be incorporated into the FFY 2017 Annual Action Plan’s goal number 1: Increase the supply of affordable housing.

Below is a summary of the National Housing Trust Fund allocation plan.

Background:

In accordance with the HUD rules and regulations, the State of New Jersey must prepare an Allocation Plan in order to receive federal funding for the National Housing Trust Fund. The purpose the NHTF program is to provide affordable housing for extremely low income households – those earning 30% or less of the Area Median Income as defined by the HUD.

 

Federal Funding:

The State of New Jersey will receive $5,599,220 from the National Housing Trust Fund in FFY 2017. These funds will be administered by the Department of Community Affairs (DCA), project financing will be structured in the form of zero (0%) percent non-amortizing loans.

 

Allocation:

FFY 2017 Allocation 

Total Allocation   $5,599,220 
      • Program Funds  $5,039,298
      • Administrative Funds  $559,922
      • Projected number of units to be created  22

 

Remainder of 5 Year Consolidated Plan: FFY 2017-2019 (Estimated)

Total Allocation   $16,797,660
      • Program Funds  $15,117,894
      • Administrative Funds $1,679,660
      • Projected number of units to be created  66

 

Target Population:                           

NHTF funds are targeted to extremely low-income households (those earning 30% or less of the Area Median Income). In addition, to meet the State’s priority housing needs, funds will be targeted to projects in which 100% of units will include our special needs populations.

 

Eligible Applicants:

Eligible applicants will be for-profit and non-profit developers. Applicants with experience in developing affordable housing, applicants with experience in serving special needs populations, and non-profit developers will receive additional points in the application process.

 

Eligible Projects:

100% of projects funded through the NHTF will be rental projects for extremely low-income households with special needs. All projects must commit to a 30-year affordability period. In order to ensure feasibility of projects, DCA will award Project-Based Housing Choice Vouchers to projects selected through the NHTF RFP. Eligible projects will be acquisition and rehabilitation or new construction. Eligible projects will contain no more than four NHTF units. Maximum award per project will not exceed $700,000. Maximum per unit subsidy will be based on unit bedroom size per the chart below:

 

Unit Size

Studio

1-Bedroom

2-Bedroom

3-Bedroom

4-Bedroom

Maximum Per-Unit Subsidy

$175,000

$250,000

$300,000

$350,000

$400,000

 

Other Criteria:

Projects will be selected according to the following criteria:

  • Geographic diversity – Successful projects will be located in areas of high opportunity, with access to public transportation, employment opportunities and other community amenities.
  • Experience, capacity, and ability to obligate funds and complete activities in a timely fashion – Successful applications will demonstrate experience in developing affordable housing, prior success in meeting project and financial benchmarks, and feasible and reasonable project timelines and budgets.
  • Ability to meet the State’s priority housing needs – Successful applications will demonstrate experience in serving special needs populations and will include a supportive services plan.
  • Leverage – Projects may apply for up to 100% of development costs from the NHTF. Additional points will be awarded to projects that demonstrate leverage from non-NHTF sources.

Comment Submission:

The New Jersey Department of Community Affairs solicits public comments on the National Housing Trust Fund Allocation Plan. Any interested parties should submit comments at a hearing scheduled for July 17, 2017 at the Department of Community Affairs building located at 101 S. Broad Street, Trenton, New Jersey in conference room 129 at 12 PM or comments can be submitted to:

James Lordi
New Jersey Department of Community Affairs
Division of Housing and Community Resources
National Housing Trust Fund Program
5th Floor
PO Box 806
Trenton, New Jersey 08625-0806

or by email to james.lordi@dca.nj.gov until July 31, 2017