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CHOICE 2011:
Overview of Program
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| Amount of Subsidy Available: |
$12,000,000 |
| Total Subsidy Allowed Per Project: |
$1,500,000 |
| Maximum Subsidy Per Unit: |
$50,000
Emerging Market Units |
Eligible Project Applications:
All projects must adhere to the CHOICE 2011 Program Guidelines and document checklist requirements. It is the responsibility of the applicant to become familiar with these guidelines and the document checklist prior to submitting an application. Application Process
Download the Application Process Instructions as a PDF (279kb PDF)
The CHOICE 2011 Application Review, Approval and Post-Commitment Process:
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- July 28, 2011: CHOICE 2011 guidelines/application forms will be made available.
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- August 9, 2011: Mandatory application preparation workshops will be held at the NJHMFA offices in Trenton for all CHOICE 2011 applicants.
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- Monday, September 12, 2011: The Agency shall begin accepting and reviewing CHOICE 2011 applications. CHOICE construction loan and subsidy funding commitments will be made by the HMFA Board on a first come first served basis. However, there will be an initial limit of two projects for each of three regions of the State (North, Central, South as defined below) and the HMFA reserves the right to fairly allocate distribution of project approvals among the regions and municipalities as it determines to be reasonable. It is anticipated that until approximately December 31, 2011 allocations will be limited as follows:
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- Up to 2 applications for projects located in northern NJ: Sussex, Passaic, Bergen, Morris, Essex, Hudson and Union counties
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- Up to 2 applications for projects located in central NJ: Middlesex, Mercer, Warren, Somerset, Hunterdon, Monmouth and Ocean counties
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- Up to 2 applications for projects located in southern NJ: Camden Burlington, Gloucester, Salem, Cumberland, Atlantic and Cape May counties
Any uncommitted CHOICE 2011 financing remaining after approximately December 31, 2011 may be committed on a first come/first serve basis to projects located in any part of the state.
As part of the fairness of allocation, generally, no more than two (2) applications per municipality will be approved for 2011 CHOICE awards. However, depending upon such things the size of approved projects, availability of remaining funds and the length of time unused funding has been available, exceptions may be made.
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- Award Selection from among Simultaneously Completed Applications:
Applications will be recommended for funding commitments on a first come first served basis in the order that they are deemed complete by the Agency staff. The Agency recognizes that the requests for 2011 CHOICE subsidy funding may exceed the total 2011 subsidy funding that is being made available. In the event that the number of applications that the Agency deems to have been simultaneously completed exceeds regional limits (if they are still in effect) or if the completed but unapproved applications exceed the total available 2011 CHOICE subsidy there will be a random selection(s) made by the Agency to determine which completed applications will be recommended for awards. Application will be deemed to have been completed simultaneously if deemed by the Agency staff to be completed within seven (7) calendar days of the date of the first completed application and there are no allocation fairness issues to consider. The Agency staff makes no representations that it will notify applicants of the approval status of any application that has not been approved by the Agency Board. The Agency will randomly select the completed application(s) for recommendation for award by assigning numbers to each application and using the HAS random selection calculator or some other verifiable random selection program to make the selection.
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- The applicant’s chosen Lead Lender (note that it is the applicant’s responsibility to select a Lead Lender and secure a commitment) and the Agency shall simultaneously review the CHOICE application. The Agency shall ensure that the application meets all CHOICE Program Guidelines and that all application instructions and requirements are met. The Lead Lender shall assist the Agency in determining the development team’s capacity and shall help analyze real estate sales comparables for the proposed project units, preliminarily underwrite the project and provide to the Agency a Term Sheet within 30 days of CHOICE application date serving as a conditional letter of interest for construction lending prior to any Agency financing commitments.
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- If there are deficiencies in the application, the Agency shall notify the applicant and send a list of those deficiencies (needed documents, missing signatures, etc.) to the applicant.
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- If and when all the information in the application is acceptable, and subject to regional restrictions and availability of funds, the Agency shall formally seek approval from the Agency Board of Directors for a commitment for project financing (construction loan, subsidy, if any, and an end loans set-aside).
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- Projects receiving Agency commitments must close within 6 months.
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- After the Agency’s Board of Directors has formally committed the Agency financing, the Lead Lender shall then underwrite the total construction loan including ordering an appraisal (which confirms viable sales prices), approving final project plans and specifications and providing the final development budget, sales prices, final sources and uses, and funding source documentation to the Agency for review and approval prior to closing.
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- After the closing takes place on all Agency and Lead Lender financing, the Lead Lender shall oversee construction period servicing and disburse the CHOICE construction loan and subsidy funds (except for the required subsidy retainage, which will be disbursed by the Agency directly to the Sponsor upon receipt of certificates of occupancy for each unit, evidence of any required unit deed restrictions and approval by the Agency of an independent project cost certification).
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- Partially completed projects, mixed commercial-residential and age-restricted projects are ineligible for CHOICE 2011 subsidy funding.
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- The Agency reserves the right to reject any and all submissions. Funding of any application is always subject to the availability of funds.
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