New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY
Subchapter 7 - TENANT SELECTION STANDARDS
Section 5:80-7.6 - Limitations on admission of over-income tenants

Universal Citation: NJ Admin Code 5:80-7.6

Current through Register Vol. 56, No. 18, September 16, 2024

(a) When applicants who are income-eligible and otherwise qualified are available, the owner may not lease any unit to an applicant whose income exceeds the applicable income limit.

(b) The owner may lease such units to over-income applicants only after he or she has exerted good faith effort to attract income-eligible applicants and such applicants are not available.

(c) Under no circumstances may an owner lease more than 10 percent of the units to over-income applicants without the prior written approval of the Agency.

(d) At Below Market Interest Rate, rent supplement, or Section 236 projects, an owner must also obtain the prior written approval of HUD or the Contract Administrator.

(e) At Section 8 projects, an owner also must obtain prior written HUD approval, except in older projects where the Section 8 Contract allows up to 20 percent.

(f) Before admitting any over-income applicant in accordance with these regulations, the owner must certify in writing that:

1. He or she has made all assisted units committed under the contract available for occupancy by eligible families;

2. He or she had taken all reasonable steps to attract income-eligible applicants;

3. No income-eligible applicants were available when the over-income applicant was selected for admission.

(g) The owner must retain this certification in the over-income tenant's file.

(h) If an owner fails to comply with the provision of this section, the Agency may invoke any remedies available under 55:14K-1 et seq. or Agency regulations. In addition, the HAP contract and/or Section 8 regulations provide that HUD may reduce the number of units under the HAP contract, invoke other remedies available under the contract or consider such failure as grounds for suspension or debarment from HUD programs.

(i) In the case of assisted living residences (ALRs), where the owner has made a good faith effort to attract income-eligible applicants as provided in (b) above but there is no income-eligible applicant available, an ALR owner may be permitted to rent an income-restricted unit to an over-income applicant, provided that:

1. The ALR adheres to the provisions of (a), (c), (f) and (g) above; and

2. The ALR rents the next available non-restricted ALR unit to the next income-eligible applicant who applies.

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