Important General Information for Multifamily Developers

Important General Information for Multifamily Developers


2016 Volume Cap
The Agency encourages and continues to accept applications for multifamily developments. 2016 Volume cap will be provided to as many qualified projects as are reasonably feasible, subject to the continued availability of volume cap for these purposes.

Due to the overwhelming demand for 2016 volume cap, the initial priorities are as follows:

  1. Superstorm Sandy projects receiving Fund for the Restoration of Multifamily Housing (FRM) and/or Sandy Special Needs Housing Fund (SSNHF) funds;
  2. Non-Sandy projects that have received a commitment, or those previously scheduled to receive an Agency financing commitment; and
  3. Agency portfolio workout projects.

Based on these priorities, the Agency anticipates that the 2016 volume cap allocation may be fully exhausted. Applicants that do not meet a listed priority should be aware that the first availability for a firm commitment may be delayed until 2017.

2017 Volume Cap
The Agency is continually monitoring the utilization of volume cap and will review whether there is a need for a priority funding criteria for projects requesting volume cap for 2017 and beyond. 

The New Jersey HMFA offers several financing options to assist sponsors and developers in the production and preservation of affordable housing. Prospective housing developers will benefit from learning more about HMFA's various multifamily financing programs.

The HMFA's Multifamily division handles Programs & Credit (for new construction and rehabilitation projects) as well as Multifamily Preservation Lending (for existing deed restricted affordable housing).

HMFA development and financing experts help each project obtain the best possible financing for the long-term benefit of the building and its residents. HMFA will monitor and assist prospective developers in processing an application; however, it is the development team who must initiate and coordinate the actions and events required to advance a proposal through its various stages from concept to completion.

A typical development team is comprised of the developer, attorney, architect, general contractor, and, after completion of a development, a managing agent.

Applying and Program Contacts

For Multifamily Programs, contact:

Marisol Rodriguez, Director of Multifamily Programs and Lending
Phone: 609-278-7526

UNIAP Application

The UNIAP, HMFA's Unified Application for Multifamily Housing Production Programs, may be downloaded from our UNIAP page.

Please Take Notice

The underwriting guidelines, policies, procedures, and forms here may be amended from time to time due to changes in market conditions and/or changes in HMFA's housing policies or initiatives. Such amendments may occur without notice and are applicable to all pending and future applications. Applicants are, therefore, responsible for contacting the HMFA to ascertain whether or not there have been any changes since the date of issuance of the information provided here and for complying with such changes.

Eligible Housing Developers

Private developers, municipalities, well established not-for-profit groups such as religious organizations and units, etc. are among those eligible for HMFA financing programs.

Eligible Project Types

HMFA encourages the preservation of affordable housing. Developers should, however, bear in mind that a housing proposal must meet HMFA standards for the site, neighborhood location, accessibility of services, marketability, design and construction. The proposal must be financially feasible, and comply with applicable local, state and federal requirements. The primary determinant, with regard to eligibility for HMFA financing, is that the housing have a rental cost which is financially feasible and is consistent with low- or moderate-income needs.

In selecting applications for loans, priority is given to applications for rental housing loans for the construction, improvement or rehabilitation of housing projects which will be a part of or constructed in compliance with the New Jersey State Development and Redevelopment Plan. Copies of the Plan may be obtained at the New Jersey Office of State Planning, Department of Community Affairs, or by calling (609) 292-7156. In addition, consideration is given to:

  1. the comparative need of the area or residents to be served by the proposed housing project;
  2. the ability of the applicant to construct, operate, manage, and maintain the proposed housing project;
  3. the existence of zoning or other regulations to protect adequately the proposed housing project against detrimental future uses which could cause undue depreciation in the value of the project;
  4. the availability of adequate parks, recreational areas, utilities, schools, transportation, and parking;
  5. the availability of adequate, accessible places of employment; and
  6. where applicable, the eligibility of the applicant to make payments to the municipality in which the housing project is located in lieu of local property taxes.

Permanent, Construction Only, Construction and Permanent Loan Types

HMFA has three types of loan programs. They are refinancing permanent loans, construction loans that convert to permanent financing; and permanent loans with a construction escrow. Most loans are funded through the sale of bonds. These bonds may be either tax-exempt or taxable. The interest income on tax-exempt bonds is exempt from federal income tax. Tax-exempt bonds generally have a lower interest rate and, as a result, HMFA is able to provide loan financing at below market interest rates.

Projects financed through the sale of tax-exempt bonds must comply with Section 142(d) of the Internal Revenue Code and the applicable U.S. Department of Treasury regulations. These regulations control such things as the low- or moderate-income occupancy requirements as well as the use of the buildings. Furthermore, these bonds are subject to a statewide volume cap and the availability of the same for the funding of housing projects.

Taxable bonds are generally less restrictive; however, they usually have an interest rate of approximately 200 basis points higher than that of tax-exempt bonds. Under special circumstances, HMFA will fund loans from the Multifamily Rental Housing Production Fund Program. This program's funds are generally accessed to provide short-term loans for local housing authority turnkey projects or to provide immediate loans in anticipation of refunding the loan with bond proceeds at the next occurring bond issuance of HMFA.

Equal Opportunity

HMFA prohibits discrimination because of race, religious principals, color, national origin, or ancestry by any housing sponsor, institutional lender, loan originator, or any agent or employee thereof in connection with any housing project or eligible loan being funded directly or indirectly by HMFA.

Discrimination is prohibited because of age in admission to, or continuance of occupancy of, any housing project receiving assistance, except for any housing project constructed under a governmental program restricting occupancy of at least 90% of the dwelling units to persons 62 years of age or older and any members of their immediate households or their occupant surviving spouses, or constructed as a retirement subdivision or retirement community as defined in the "Retirement Community Full Disclosure Act," P.L. 1968, c.215 (C.45:A-1 et seq.).