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The COVID-19 pandemic had an unprecedented effect on the construction industry and multifamily development. While projects are progressing, residual effects remain. High construction costs and increased interest rates continue to be reported, resulting in difficulty meeting the prescribed Total Development Cost limits in the QAP.
Section 42(m)(1)(A)(iv) of the Internal Revenue Code permits a waiver/ exception of the approved QAP, so long as “a written explanation is available to the general public for any allocation of a housing credit dollar amount which is not made in accordance with established priorities and selection criteria of the housing credit agency.”
Further, N.J.A.C. 5:80-19.1 permits the Agency to waive any of its regulations provided that such waiver 1) does not contravene the Agency’s enabling statute and 2) the Agency finds that such waiver promotes the statutory purposes of the Agency.
As approved by the members of the HMFA Board at its meeting on March 28, 2024, effective immediately the new cost limits shall be as follows, and will be codified in the 2025 QAP:
- $350,000 per unit for buildings of one to four residential stories
- $380,000 per unit for buildings with five or six residential stories
- $410,000 per unit for buildings with over six residential stories
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