• HMFA Funding Programs

  While the HMFA works with all types of organizations, we are committed to advancing the work of non-profits and community organizations. Our financing programs are open to non-profit developers, who are encouraged to meet with Program staff to discuss project financing. The work that non-profits do not only creates much-needed affordable housing, but can positively impact the community as well. NJHMFA will continue to support non-profits in their housing and community development efforts.  Below are listed some programs that non-profits may find the most useful. Please explore the HMFA website for additional programs that might match your housing financing needs.

  Mixed Income

  CHOICE (Choices in Home Ownership Incentives Created for Everyone) 
  Tax Exempt 80-20
  City Living Program
  5-25 Program
  At Home Downtown

  Homeownership

  Single Family Mortgage Program
  Smart Start Program
  One Hundred Percent Mortgage Program
  Purchase/Rehabilitation Mortgage Program

  Special Needs

• Low Income Housing Tax Credit Program

  The Low Income Housing Tax Credit Program provides equity financing for affordable rental housing and is governed by a Qualified Allocation Plan (QAP).  Within New Jersey’s QAP there are two avenues that take a non-profit organization one step closer to receiving tax credits.  First is the non-profit set-aside.  Briefly stated, the non-profit set-aside is a reservation of tax credits within the Family Cycle given to the highest-ranking eligible application from a qualified nonprofit organization.  The second aspect of the QAP that could benefit a non-profit organization is contained within the point system for the Special Needs Cycle.  In the competitive scoring phase of application review, already having passed the threshold review, applications submitted by a qualified nonprofit organization are awarded an additional five points.

  Given the successful history of the Low Income Housing Tax Credit Program, demand exceeds supply by almost three-to-one.  This has led to a fairly intricate competition, with applications typically due in April or May.  To defray some of the complexities in applying for tax credits, New Jersey Housing and Mortgage Finance Agency provides extensive application and compliance trainings to assist the development community.

  General information about the Tax Credit Program is available on our website or by calling (609) 278-8818.

• Other Funding

  Pre-Development Loan and Acquisition for Non-Profits (PLAN) Fund

  Created in 2004, this new loan fund is administered by The Reinvestment Fund, a private fund manager.  The Fund was created through public and private investments and is supported by a partial HMFA guarantee.  The loan pool will ultimately be capitalized at $10 million and will revolve regularly.  The fund is for non-profit housing developers with established production track records to be used for acquisition and predevelopment expenses.  Additional information can be obtained through The Reinvestment Fund.

  DCA Office of Housing Advocacy (OHA) Non-Profit Grant Program

  This program enhances the capabilities of non-profits to expand their roles as affordable housing providers and to increase their housing production.  Significant changes were made to the OHA Program in FY ’04.  Each grantee is provided base level funding of $48,000; and for the first time, each has an opportunity to earn additional bonus funds up to $72,000 through increases in their production of housing units.  As they build more affordable housing, their grant will increase which will result in more affordable housing throughout New Jersey.  Since 2002, the Housing Advocacy Grant program has facilitated the production of 1,764 units of affordable housing by 29 non-profit grantees and an additional 199 units through its five HOME CHDO grantees.  Click here to obtain more information about the program through DCA.

In order to build capacity, an organization needs to plan and complete development projects.  The Agency is prepared to assist in this regard by providing financing for smaller projects.  Specifically, up-and-coming non-profits are encouraged to explore the At Home Downtown Program, which provide financing for one to four units in a downtown location, and the 5-25 Program, which provides financing for five to 25 units of rental housing.

Special Needs
           Project Freedom at Hamilton

Tenant Ownership
            329 Park Avenue (Park Avenue Tenants Association)

Tax Credits
            Center House

Non-Profit/For-Profit Partnership
            339 Park Avenue

Housing and Community Development Network of New Jersey (http://www.hcdnnj.org/)

US Department of Housing and Urban Development (www.hud.gov)

Federal Home Loan Bank (http://www.fhlbanks.com/)

Corporation for Supportive Housing (http://www.csh.org/)

Supportive Housing Association of New Jersey (http://www.shanj.org/)

Community Development Block Grant (CDBG) and HOME funds are allocated to jurisdictions, either at the municipal, county or state level depending on population. These funds may be used for affordable housing development.  In addition, municipalities involved in the Council on Affordable Housing (COAH) process may have funding for affordable housing development through Regional Contribution Agreement funds or local Development Fees. Banks are required, through the Community Reinvestment Act (CRA), to invest in their surrounding communities and may be another source of funds.