New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY
Subchapter 20 - CERTIFICATION AND RECERTIFICATION OF INCOME
Section 5:80-20.8 - Surcharges
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Upon recertification, if the gross aggregate family income exceeds the maximum income limit pursuant to 5:80-8.2 by 25 percent or less, the family shall continue to occupy the unit without the imposition of any surcharges. If the gross aggregate family income exceeds the maximum income limit by more than 25 percent, the family may continue to occupy the unit, subject to payment of a surcharge as outlined in (c) below. Such surcharges may only be imposed with approval of the Agency. When imposing surcharges, housing sponsors shall give families notice that they may be subject to eviction if their income continues to exceed the maximum income limit for six months from the expiration of the family's lease.
(b) Families subject to surcharges for failing to complete the recertification process (see 5:80-20.6) shall be surcharged at the maximum rate outlined in (c) below and may also be subject to eviction in accordance with 5:80-20.9. Sponsors shall provide families with notice at least 30 days prior to the expiration of the lease that a surcharge will be imposed for failure to recertify. Such surcharges or eviction actions require Agency approval.
(c) Surcharges imposed shall be based upon a family's unit rent in accordance with the following schedule:
| Percentage that Gross Aggregate Income exceeds the Maximum | Surcharge on Unit |
| Income Limit | Rent |
| Up to and including 125% | None |
| In excess of 125% up to and including 130% | 5% |
| In excess of 130% up to and including 135% | 10% |
| In excess of 135% up to and including 140% | 15% |
| In excess of 140% up to and including 145% | 20% |
| In excess of 145% up to and including 150% | 25% |
| In excess of 150% | 30% |
(d) Housing sponsors shall pay the surcharge to the municipality granting tax exemption to the project but only up to an amount that, together with payments made to the municipality in lieu of taxes and for any land taxes, equals 25 percent of the total rents or carrying charges of the project for the current and any prior years that the project has been in operation. For projects on which the Agency has made a loan financed with the proceeds of bonds issued prior to January 1, 1973, any remainder of the surcharge or the total surcharge, if tax exemption has not been granted, shall be paid into the Agency's housing finance fund securing the bonds issued to finance the project. For projects financed on or after January 1, 1973, any remainder of the surcharge or the total surcharge, if tax exemption has not been granted, shall be paid to the Agency.
(e) Surcharges shall be imposed upon expiration of the lease provided families have received 30 days notice pursuant to 5:80-20.5. Families which have not received 30 days notice prior to lease expiration shall not have surcharges imposed until the 30 day notice has expired.
