TCX Subsidy Funding Round
HMFA would like to announce the availability of approximately $11.7 million in Section 1602 Tax Credit Exchange (TCX) subsidy funding. Due to the strict expenditure deadlines associated with TCX funding, applications are due to the Tax Credit Division by November 16, 2010 (no later than Noon).
The complete eligibility guidelines and application submission requirements can be found
here (12kb PDF).
Time is of the essence, therefore please be cognizant this funding round is intended for projects substantially into the development process that have experienced a funding gap. TCX funds shall NOT be used to replace/reduce an existing funding source, including but not limited to deferred developer fee. This is a competitive application cycle and awards will be made starting with the project requesting the least amount of exchange proceeds per affordable unit. All applicants are advised to continue to seek other funding sources in the interim.
The American Recovery and Reinvestment Act of 2009, 111 P.L. 5 (H.R. 1) (the "Act"), provided two forms of assistance to the Tax Credit Program.
The Tax Credit Assistance Program (TCAP) through which New Jersey received approximately $61 million in federal subsidy funds to help bridge funding gaps in projects that received tax credit allocations but were rendered financially infeasible as a result of the downturn in the economy and the decreased value of the tax credits. The criteria and allocation method for distributing the TCAP funds was approved by the HMFA Board in May 2009.
The other form of assistance created pursuant to Section 1602 of ARRA is the Tax Credit Exchange Program (TCX) which allows housing credit agencies to exchange a certain portion of their 2009 Housing Credit allocation for cash assistance (valued at $.85 per tax credit dollar returned) from the U.S. Treasury in order to provide financial assistance to tax credit properties whose feasibility has been detrimentally impacted by the drop in the tax credit equity market.
NJHMFA Tax Credit Exchange (TCX) Program Application Process and Selection Criteria (52kb PDF)
TCX Commitments through 11/29/10 (11kb PDF)
