Current through Register Vol. 56, No. 18, September 16, 2024
(a)
The maximum eligible project costs for new units shall be the sum of the
components listed in (a) 1 through 5 below:
1.
The maximum eligible construction cost, including contingency, shall be the
lesser of the actual construction cost or the amount calculated as set forth
below:
i. For single family detached: $
105.00 per square foot plus $ 30.00 per square foot for a full
basement;
ii. For townhouse,
rowhouse or semi-detached: $ 117.00 per square foot plus $ 30.00 per square
foot for a full basement;
iii. For
one to three story multifamily, non-elevator buildings: $ 138.00 per square
foot;
iv. For two to six story
multifamily, elevator buildings: $ 143.00 per square foot;
v. For seven or more story multifamily
buildings: $ 182.00 per square foot;
vi. For projects required to provide a
parking garage, the eligible construction cost may be increased by $ 15,000 for
each parking space, not to exceed one space per unit, provided exclusively for,
and without change to, the low and moderate income tenants;
vii. The cost of approved green building
strategies; and
viii. The
Department will consider a request for subsidy in an amount greater than in
(a)1i through vii above upon the showing that compliance with same will render
the project infeasible;
2. The costs in (a)1 above may be increased,
annually, based on the percentage increase in the Housing Consumer Price Index,
as published by the United States Department of Labor, and will be published as
a Notice of Administrative Change in the New Jersey Register;
3. The maximum allowable eligible soft costs
shall be the lesser of the actual amount or 28 percent of eligible construction
cost, as calculated in (a)1 above. A list of those costs considered soft costs
is provided in Chapter Appendix L, incorporated herein by reference;
4. The maximum eligible acquisition cost
shall be the lesser of the actual cost or the amount identified in an appraisal
performed within 180 days of the date of the application to the Program. If
title to the property has been transferred within the 24 months preceding the
date of the application to the Department, the maximum subsidy will be the
lesser of the appraised value or the previous transfer price plus additional
documented expenditures to obtain zoning, environmental or other governmental
approvals necessary or useful for the development of the project, and the costs
of improvements erected for the benefit of the project. This appraisal must be
conducted by an individual or firm approved by the Department.
i. Initially, the Department will utilize the
New Jersey Housing and Mortgage Finance Agency for the selection and
procurement of appraisers, until an equivalent system can be replicated at the
Department. The cost of the appraisal will be borne by the applicant.
ii. To be considered for approval, the
appraiser must apply to the Agency, and the application shall include the
information required, or demonstrate that the appraiser has the experience, as
follows:
(1) The completion of appraisals
similar to the types of projects funded by the Agency and the
Department;
(2) The counties they
have done work in and wish to be considered for;
(3) Names and addresses of
references;
(4) A copy of the
appraiser's current New Jersey Appraiser License;
(5) A Signed acknowledgement of the Code of
Ethics and Mandatory Affirmative Action;
(6) A current copy of the appraiser's Errors
and Omission policy; and
(7) Sample
appraisals for every type of work they seek.
iii. An appraiser review committee of three,
examines all applications and sample appraisals. If deemed to have sufficient
experience, the appraiser's name will be added to a computerized rotating
selection list;
5. The
actual cost of LIHTC allocation and reservation fees, construction supervision,
if pursuant to
5:43-3.1(a)3,
capitalized reserve accounts and other costs provided that such other costs are
approved by the Department; and
6.
A developer fee, calculated as no more than eight percent of (a)1 and 2 through
5 above.
(b) The
Department will review the certification of costs prepared by a licensed
professional prior to the release of funds.
(c) The maximum non-deferred amount, which
may be taken out of the project as a developer fee shall be calculated as
follows:
1. For projects that create new
units, eight percent of the eligible project cost as determined in (a) above;
or
2. For projects that involve the
acquisition, preservation, moderate rehabilitation of existing units, or any
combination thereof, two percent of approved development cost. The Department
will consider a request for a waiver of this paragraph pursuant to
5:43-1.6 for up to five percent of
approved development cost if the cost of the repairs, renovations and/or
alterations are greater than 15 percent of the appraised "as is" value of the
project, taking into consideration:
i. The
extent and nature of the development costs incurred;
ii. The amount of the development fee being
reinvested into the project; and
iii. The need for the development fee as an
additional funding source.
(d) Projects providing new units pursuant to
5:43-3.4(a), 3.5
or 3.6 shall conform with Uniform Affordability Housing Controls as set forth
at N.J.A.C. 5:80-26.
(e) All
projects must be handicap adaptable, in compliance with the technical design
standards of the barrier free subcode adopted by the Commissioner of Community
Affairs pursuant to the "State Uniform Construction Code Act," P.L. 1975, c.
217 (52:27D-119 et seq.) and in
accordance with the provisions of
P.L.
2005, c. 350
§5 (
52:27D-123.1 5).
(f) The minimum size excluding exterior
hallways, garages, common space and unfinished space, for new Balanced Housing
units shall be:
1. For studio units: 550
square feet;
2. For one bedroom
units: 600 square feet;
3. For two
bedroom units: 850 square feet;
4.
For three bedroom units: 1150 square feet; and
5. For four bedroom units: 1250 square
feet.
(g) Each new unit
funded shall contain at least one bedroom with no less than 150 square feet.
1. Each additional bedroom shall be no less
than 100 square feet.
2. Each
single-room occupancy unit shall be no less than 100 square feet.
(h) Eligible neighborhoods. All
projects proposed for funding must be in an eligible neighborhood. Applicants
shall be required to demonstrate that the neighborhood is appropriate for the
population to be served.
(i)
Applicants to the Balanced Housing Program will be required to demonstrate
their ability, both administrative and financial, to develop and manage the
proposed project.
1. The qualifications and
experience with respect to the development, marketing and, where relevant, the
long-term management of affordable housing of key participants, including, but
not limited to, the sponsor/developer, management entity, consultant,
administering agent and the municipality, will be examined.
i. Failure by any of the participants to
comply with the program requirements in projects previously funded by the
Department, including, but not limited to, failure to pay the Housing
Affordability Service, or failure to make required loan payments to the
Department, shall be grounds for disqualifying an application and/or a
participant.
ii. The association of
any of the key participants with other projects which are experiencing either
operating difficulties or delays in development shall be grounds to deny the
application or to carry it forward until such time that the problems are
corrected.
2.
Participants lacking the qualifications necessary to carry out the project will
be encouraged to joint venture with individuals/groups that can provide these
qualifications.
(j)
Rehabilitation of occupied units: If a sponsor/developer is undertaking
reconstruction and one or more of the units is currently occupied, the occupied
unit(s) shall be eligible only if the household occupying the unit is certified
to be income eligible. If any current occupants will be relocated, this action
must be completed in accordance with an approved Workable Relocation Assistance
Plan (WRAP), pursuant to
20:4-1 et seq. and 52:31B-1 et
seq.
(k) All applicants shall
demonstrate control of the project site by holding title, by a sales contract,
by an option to purchase, or by designation from the municipality as designated
developer.
(l) All
projects shall conform with the Balanced Housing Green Building Requirements
pursuant to chapter Appendix M.
(m)
Every building containing new Balanced Housing units shall be provided with an
automatic fire suppression system. Such system shall include the entire
building and shall be installed in accordance with the Uniform Construction
Code.
(n) All projects shall be
appropriate to the site or the immediate neighborhood within which it is to be
built or rehabilitated.
