New Jersey Housing and Mortgage Finance Agency

New Jersey Housing and Mortgage Finance Agency

Compliance

The Compliance division is responsible for monitoring all properties with tax credit financing in the State of New Jersey. The HMFA requires annual owner compliance certifications by January 31.

In compliance with the Federal Tax code, the HMFA conducts annual file and physical inspections for 20% of the 66,000 units it monitors for 1/3 of the projects in its portfolio. Infractions are reported to the Internal Revenue Service, which, in its discretion, may conduct tax audits. Such audits may result in tax credit recapture and imposition of tax penalties.

Attention Tax Credit Property Owners

 

  • View the current Income Limits, Max Rents and Utility Allowance
  • Click here to view the information due to HMFA no later than January 31, 2022
  • Download the Compliance Monitoring Manual
  • Download the 8823 Guide
  • Mitas Web Application If you encounter issues when uploading a NAHMA file please click here
    • Mitas User accounts are only active for 90 days. Each Mitas User must log into the system at least every 89 days to avoid account deactivation.

      If your account has been deactivated or locked, please contact your Tax Credit Analyst for reactivation. For security reasons, Mitas User accounts can only be reactivated for the account holder.

      If you have forgotten your password, please click on the "Email Temporary Password" tab. The system will email it to you immediately providing your email address is listed in your Mitas User Account. If the email is not received in your "Inbox" immediately, please check your "Spam" folder. Once received, please copy and paste it into the "password" cell in the Mitas System. You will then be prompted to change your password. Please remember to include at least one upper case letter and one number.

  • Audited financial statments are due annually by May 1st for all tax credit properties within their initial compliance period (first 15 years). Must include LIHTC#, name of project, detailed income and expense schedule and vacancy rate calculation.  Failure to submit your audited financial statement shall result in a notice of noncompliance, which may be reported to the IRS.
  • Effective February 1, 2015: Passbook Savings Rate - Effective February 1, 2015, the passbook savings rate to be used for all move-in, initial, annual, and interim recertifications when a family has net assets over $5,000 is .06%. This .06% rate must be used until Multifamily Housing publishes and makes effective a new passbook savings rate. Click on the link above to view the complete HUD notice.
  • Please contact your Tax Credit Compliance Analyst if you have any questions.

 

 

Compliance Forms

The compliance forms are updated regularly, please find the necessary form below. * Links with an asterisk are now required to be filled out electronically. 

Important Note - Only users with Adobe Acrobat Professional will be able to save documents that are filled out. If you are using Adobe Reader please print out the document before you close it or you will lose your work. If you have any questions please call Johanna Peña at 609-278-7629.

Gross Rent Floor Election

Revenue Procedure 94-57 clarifies that the gross rent an owner may charge will not fall below the rent limit that was in effect either at the time of initial allocation* (default) or at the owner’s election, the rent limit that is in effect at the placed in service date.

  • *For 9% projects, the initial allocation is the date of carryover.
  • *For 4% projects, the initial allocation is the date of the 42m determination.

If the owner wishes to elect the rent limits in effect at the placed in service date, a notification letter must be submitted to Natasha Solomon, Manager of Tax Credit Compliance, BEFORE any building is placed in service.

If notice is not received, or if it is received after the placed in service date, the gross rent floor will be the rent limits in effect at the time of initial allocation.* This is a one time, irrevocable election.