As you know, in an attempt to simplify the rent increase approval process for Market and Tax Credit developments, NJHMFA published new rent increase regulations in The New Jersey Register on March 17, 2003. These revised regulations allow NJHMFA financed Tax Credit and Market properties to implement a rent increase annually without prior NJHMFA approval, provided the increase is the lesser of 3% or the applicable overall Consumer Price Index (CPI) at September 30th of the preceding year.
The published applicable overall CPI for 9/30/22 is 6.2% Therefore, the maximum rent increase that can be implemented without prior NJHMFA approval for the year January 1, 2023 through December 31, 2023 is 3%. Please be reminded if you decide to implement this increase that all tenants must be notified in accordance with the terms of their existing lease. In addition, it is required that notification of the increase also be forwarded to the assigned Housing Management Officer.
Please note that these 2003 revisions affect only NJHMFA financed Market and Tax Credit properties and do not override any tax credit maximum rent rules. All HUD subsidized developments (Section 236 and Section 8) must continue to follow existing rent increase rules.
