*Important-Extension of the December 2020 Cost Cap Waiver to Include 9% Projects Awarded Through the Close of Calendar Year 2021.
Attention Developers
The COVID-19 pandemic has had an unprecedented effect on the construction industry and multifamily development resulting in supply chain shortages, labor and workforce shortages, timing delays, enhanced construction safety requirements, and increased costs. Given the volatility in the current market, on June 30, 2022, the Members of the Agency Board voted to approve an extension of the cost cap waiver to include 9% projects awarded through the close of calendar year 2021.
Section 42(m)(1)(A)(iv) of the Internal Revenue Code permits a waiver/ exception of the approved QAP, so long as a “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.
