Bill > S4071

This bill authorizes the New Jersey Housing and Mortgage Finance Agency (HMFA) to sell up to $500 million in tax credits over six years through competitive auctions, with an annual cap of $100 million and a minimum sale price of 80% of the credit's value. The proceeds will be split equally between creating middle-income workforce housing and low- and moderate-income housing to help municipalities meet affordable housing obligations. Specifically, the bill allows the agency to auction tax credits originally allocated to the Brownfields Redevelopment Incentive Program, with an initial allocation of $200 million, and potentially an additional $300 million in future years if the initial allocation is exhausted. The agency must prioritize housing developments in distressed older suburban municipalities and can use up to 5% of auction proceeds for administrative costs. Successful bidders must enter into contracts, pay the bid amount by wire transfer, and can apply the credits against various state tax liabilities or transfer the credits to other taxpayers, subject to certain restrictions. The bill aims to provide financial resources for affordable housing development across different income levels in New Jersey by creating a new mechanism for tax credit allocation and sale.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S4071