Important General Information for Multifamily Developers
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
Marisol Rodriguez, Assistant Director of Multifamily Programs and Lending
Please Take Notice
Eligible Housing Developers
Eligible Project Types
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:
- the comparative need of the area or residents to be served by the proposed housing project;
- the ability of the applicant to construct, operate, manage, and maintain the proposed housing project;
- 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;
- the availability of adequate parks, recreational areas, utilities, schools, transportation, and parking;
- the availability of adequate, accessible places of employment; and
- 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
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.
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.).