N.J. Admin. Code § 5:80-33.1
Current through Register Vol. 56, No. 18, September 16, 2024
Section 5:80-33.1 - Introduction(a) Section 42 of the Internal Revenue Code of 1986 (Code), 26 U.S.C. § 42, establishes a low-income housing tax credit that may be applied against the Federal income tax of persons or associations who or which have invested in certain buildings providing housing for families of low-income. As the housing credit agency for the State of New Jersey, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) allocates these credits to qualified taxpayers and thereafter monitors their compliance with Section 42 of the Code. The rules in this subchapter set forth the standards and procedures used by NJHMFA to perform its allocation and monitoring responsibilities and this subchapter represents the qualified allocation plan for New Jersey required by Section 42 of the Code.(b) In each calendar year, the total dollar value of the credits that can be allocated pursuant to this subchapter, except for the credits issued in connection with buildings financed with the proceeds of certain tax-exempt bonds, is limited by the State housing credit ceiling provided at Section 42 of the Code. NJHMFA, therefore, has determined to award these limited credits on a competitive basis. Applicants seeking an allocation of these credits must apply pursuant to one of the cycles set forth at N.J.A.C. 5:80-33.4, 33.5, or 33.6. NJHMFA ranks the applications received in each cycle according to the respective point scales provided at N.J.A.C. 5:80-33.15, 33.16, and 33.17. The credits assigned to each cycle are then reserved for the highest-ranking applications that meet the eligibility requirements set forth at N.J.A.C. 5:80-33.12.(c) Credits issued in connection with buildings financed with the proceeds of tax-exempt bonds subject to the volume cap restrictions provided at Section 42(h)(4) of the Code are not limited by the State housing credit ceiling and, therefore, are not allocated on a competitive basis. Applicants seeking such "volume cap tax credits" are directed to the provisions at N.J.A.C. 5:80-33.9.(d) Every applicant shall comply with the requirements of this subchapter and ensure that any application presented to NJHMFA is clear, unambiguous, and complete in all respects at the time of submission.(e) These rules shall be construed and administered in a manner consistent and in accordance with the Code and regulations promulgated thereunder.(f) Compliance with the requirements of the Code is the sole responsibility of the owner of the building for which the credit is allowable. NJHMFA makes no representations to the owner or anyone else as to compliance with the Code, Federal regulations issued pursuant to the Code, or any other laws or regulations governing Low-Income Housing Tax Credits, or as to the financial viability of any project. All applicants should consult their accountant, tax attorney, or advisor as to the specific requirements of Section 42 of the Code governing the Low-Income Housing Tax Credit Program.(g) This subchapter has been promulgated in a manner consistent with the smart growth initiatives required pursuant to Executive Order No. 4 (2002).N.J. Admin. Code § 5:80-33.1
Amended by R.1998 d.279, effective 6/1/1998.
See: 30 N.J.R. 1132(a), 30 N.J.R. 1978(a).
Rewrote (a); added new (b) through (d); and recodified former (b) and (c) as (e) and (f).
Amended by R.1999 d.120, effective 4/5/1999.
See: 31 N.J.R. 122(a), 31 N.J.R. 860(a).
In (b) and (c), changed N.J.A.C. references.
Amended by R.2002 d.233, effective 7/15/2002.
See: 34 N.J.R. 1574(a), 34 N.J.R. 2417(a).
Added (g).
Amended by R.2003 d.300, effective 7/21/2003.
See: 35 N.J.R. 1616(a), 35 N.J.R. 3298(b).
In (a), (b), amended N.J.A.C. reference.
Amended by R.2013 d.086, effective 6/17/2013.
See: 45 N.J.R. 530(a), 45 N.J.R. 1511(a).
In (d), deleted "literally" following "comply", and inserted a comma following "unambiguous".Amended by 56 N.J.R. 343(b), effective 3/4/2024