June 30, 2022
Developer Bulletin 2022-8:
Update on Cost Containment Limits
NJHMFA encourages all of our business partners and constituents to submit any and all documentation in an electronic format whenever possible as staff will continue to check email and review information submitted electronically.  

*Important- HMFA has increased the limits on Total Development Costs for 2022 LIHTC Applicants by ten percent (10%)


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 and increased costs. Given the volatility in the current market, on June 30, 2022, the Members of the Agency Board voted to approve a 10% increase of limits on Total Development Costs to be put into effect for 2022 Low Income Housing Tax Credit applications (with certain permitted exclusions):

·        $302,500 per unit for buildings of one to four residential stories
·        $330,000 per unit for buildings with five or six residential stories
·        $357,500 per unit for buildings with over six residential stories

*This increase is subject to the 10 business day veto period commencing after the June 30, 2022 Agency Board Approval.*

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.  
Questions? Need Help? 

If you have questions, e-mail your requests to the LIHTC mailbox at NJHMFAtaxcredits@njhmfa.gov.

Access forms, checklists, policies, previous developer bulletins and more under the Developer Tab, on the NJHMFA website.
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New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov