The Compliance division is responsible for monitoring all properties with tax credit financing in the State of New Jersey. The HMFA requires annual owner compliance certifications by January 31.
In compliance with the Federal Tax code, the HMFA conducts annual file and physical inspections for 20% of the 22,000 units it monitors for 1/3 of the projects in its portfolio. Infractions are reported to the Internal Revenue Service, which, in its discretion, may conduct tax audits. Such audits may result in tax credit recapture and imposition of tax penalties.
Attention Tax Credit Property Owners
- Download 2016 Income Limits and Max Rents (539k PDF)
- Click here to view the information due to HMFA no later than January 31, 2017 (11k PDF).
- Download the Compliance Monitoring Manual (4MB PDF).
- Download the 8823 Guide (1MB PDF)
- Mitas Web Application (*Must use Internet Explorer as browser*)
- Audited financials are due annually by May 1st for all tax credit properties within their initial compliance period (first 15 years). Failure to submit your audited financial statement shall result in a notice of noncompliance, which may be reported to the IRS.
- Effective February 1, 2015: Passbook Savings Rate (167k PDF) - Effective February 1, 2015, the passbook savings rate to be used for all move-in, initial, annual, and interim recertifications when a family has net assets over $5,000 is .06%. This .06% rate must be used until Multifamily Housing publishes and makes effective a new passbook savings rate. Click on the link above to view the complete HUD notice.
- Please contact your Tax Credit Compliance Analyst (61k PDF) if you have any questions.
Access the current and historical income limit, max rent and utility allowance information
The compliance forms are updated regularly, please find the necessary form below.
* Links with an asterisk are now required to be filled out electronically.
Important Note - Only users with Adobe Acrobat Professional will be able to save documents that are filled out. If you are using Adobe Reader please print out the document before you close it or you will lose your work. If you have any questions please call Bruce Yellin at 609-278-7474.
- New Property Checklist (85k PDF)
- New Property Setup Form (56k XLS)
- Annual Property Checklist (75k PDF)
- Project Certification for Projects with Social Service Models and/or Special Needs Component (61k PDF)
- Special Needs Population Certification Form (18k PDF)
- Certification of Zero Income (24k DOC 24k)
- Employment Verification (15k PDF)
- Frail Elderly Certification (12k PDF)
- *Owner's Certificate of Continuing Program Compliance* (136k PDF)
- *Owner's Certification of Continuing Program Compliance During The Extended Use Period* (99k PDF)
- *Project Status Form* (60k PDF)
- Student Status Verification (160k PDF)
- Tenant Income Certification (101k DOC) - Effective February 1, 2015
- Under $5,000 Asset Certification (41k DOC)
- *Year 15 Status Report Form* (10k PDF)
- Child Support Affidavit (107k PDF)
Gross Rent Floor Election
Revenue Procedure 94-57 clarifies that the gross rent an owner may charge will not fall below the rent limit that was in effect either at the time of initial allocation* (default) or at the owner’s election, the rent limit that is in effect at the placed in service date.
- *For 9% projects, the initial allocation is the date of carryover.
- *For 4% projects, the initial allocation is the date of the 42m determination.
If the owner wishes to select the rent limits in effect at the placed in service date, a notification letter must be submitted to Natasha Solomon, Manager of Tax Credit Compliance, BEFORE any building is placed in service.
If notice is not received, or if it is received after the placed in service date, the gross rent floor will be the rent limits in effect at the time of initial allocation.* This is a one time, irrevocable election.