Compliance

Compliance

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

*IMMEDIATE ACTION REQUIRED*

  • Annual tenant information for calendar year 2013 shall be transmitted via the Mitas WebAccess System by 1/31/2014. To enter the Mitas WebAcess System please click here.
  • Please contact your Tax Credit Compliance Analyst (61k PDF) if you have any questions.

Current Income Limits, Max Rents and Utility Allowances

Access the current and historical income limit, max rent and utility allowance information

Compliance Forms

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.

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 the Frank Sciarrotta, 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.