New Jersey Housing and Mortgage Finance Agency

New Jersey Housing and Mortgage Finance Agency

Uniform Housing Affordability Controls

NOTICE: Pursuant to P.L. 2024, c.2, new interim UHAC regulations went into effect on December 19, 2024. These interim regulations will be in effect until December 19, 2025, or such earlier date at which time the Agency amends, adopts, or readopts the rules pursuant to the New Jersey Administrative Procedure Act, N.J.S.A. 52:14B-1 et seq. Any unit that, prior to December 19, 2024, received substantive certification from the now-disbanded COAH, was part of a judgment of compliance from a court of competent jurisdiction, or became subject to a grant agreement or other contract with either the State or a political subdivision thereof, shall be subject to the prior version of UHAC in terms of physical unit standards such as bedroom distribution, building standards, and square footage. However, note that the interim rules for administration of units, such as marketing and certification procedures, apply to all units.

 

What Is UHAC?

N.J.A.C. 5:80-26.1 et seq., a.k.a. the Uniform Housing Affordability Controls (UHAC), governs the administration of many affordable units in New Jersey. These regulations cover the process of pricing, marketing, and selecting occupants for affordable housing. For a plain-English guide to UHAC, consult the “Understanding UHAC” manual above. Amendments adopted in 2024 create greater clarity for municipalities and affordable housing practitioners in implementing the requirements of P.L.2024, c.2; update affirmative marketing requirements in accordance with modern housing search practices; and align certification calculations and processes with other extant affordable housing programs. A full list of changes is available in this memo.

To which affordable units does UHAC apply?

UHAC does apply to units:

  • receiving credit under the state’s Fair Housing Act (including, but not limited to, units in municipalities that have received a compliance certification or are in the process of seeking compliance certification, as that term is defined at N.J.S.A. 52:27D304; that have a court-approved settlement agreement and/or judgment of compliance and repose; that have been or are the subject of exclusionary zoning litigation, including, but not limited to, builder’s remedy litigation; that received credit from the former Council on Affordable Housing); or
  • received funding from the DCA under the Affordable Housing Trust Fund (AHTF), previously known as the Neighborhood Preservation Balanced Housing Program; or the Department’s Federal HOME Investment Partnerships program, 24 CFR Part 92
  • received funding from the Agency under its UHORP, MONI, or CHOICE programs; or with respect to which a municipality or developer contracts with the Agency, HAS, or other experienced administrative agent approved by DCA for the administration of affordability controls pursuant to the Fair Housing Act.

UHAC does not apply to units:

  • qualifying for the Federal Low-Income Housing Tax Credit (LIHTC) under Section 42 of the Internal Revenue Code,
  • units that received Balanced Housing funds under the Agency’s Home Express program
  • units receiving funding from HUD under the Federal HOME Investment Partnerships program, 24 CFR Part 92
  • the National Housing Trust Fund program, 24 CFR Part 93
  • the HUD Section 202 Supportive Housing for the Elderly program, 24 CFR Part 891
  • the HUD Section 811 Supportive Housing for Persons with Disabilities program, 24 CFR Part 891
  • the HUD HOPE VI program; or the Federal Home Loan Bank Affordable Housing Program, 12 CFR Part 1291.

However, newly constructed LIHTC units that receive credit under the Act must be affirmatively marketed by the developer/owner of those units in accordance with N.J.A.C. 5:80-26.16. Transitional housing units are governed by the rules of their sponsoring programs, such as the Recovery Housing Program, authorized by section 8071 of the SUPPORT for Patients and Communities Act, Pub.L. 115-271, § 8071, 132 Stat. 3894 (2018).

Appendices Links Coming Soon

Appendix A: Mandatory Deed Form for Ownership Units

Appendix B: Mandatory Deed Form for Ownership 95/5 Units

Appendix C: Restrictive Covenant Required by N.J.A.C. 5:80-26.6(d)

No equivalent

Appendix D: Mandatory Deed Form for Ownership Units Subject to Restrictive Covenant Required by N.J.A.C. 5:80-26.6(d)

Appendix E: Mandatory Deed Restriction for Rental Projects

Appendix F: Form of Release (Quitclaim Deed) for Restricted Units

Appendix G: Form of Note for Payment of Recapture Amount for a 95/5 Unit

Appendix H: Form of Mortgage Securing Payment of Recapture Amount for a 95/5 Unit

Appendix I: Form of HAS Municipal Agreement

Appendix J: Form of Certificate for Applicants Certified to Ownership Unit, Required by N.J.A.C. 5:80-19(d)2

Appendix K: Form of Certificate for Applicants Certified to Rental Unit, Required by N.J.A.C. 5:80-26.19(d)2

Appendix L: Form of Recapture Mortgage Note in Favor of State, Required by N.J.A.C. 5:80-26.6(c)

Appendix M: Form of Mortgage Securing Payment of Recapture Note in Favor of the State, Required by N.J.A.C. 5:80-26.6(c)

Appendix N: Form or Recapture Mortgage Note in Favor of Municipality, Required by N.J.A.C. 5:80-26.6(c)

Appendix O: Form of Mortgage Securing Payment of Recapture Note in Favor of the Municipality, Required by N.J.A.C. 5:80-26.6(c)

Appendix P: Form of Recapture Mortgage Note for UHORP and MONI Units, Required by N.J.A.C. 5:80-26.6(c)

Appendix Q: Form of Mortgage Securing Payment of Recapture Note in Favor of the Agency, Required by N.J.A.C. 5:80-26.6(c)

Appendices Links Coming Soon

Appendix A: Mandatory Deed Form for Ownership Units

Appendix B: Mandatory Deed Form for Ownership 95/5 Units

Appendix C1: Restrictive Covenant Required by Section 5:80-26.5(d) - For New Units

Appendix C2: Restrictive Covenant Required by Section 5:80-26.5(d) - For 95/5 Units

Appendix D: Mandatory Deed Form for Ownership Units Subject to Restrictive Covenant Required by Section 5:80-26.5(d)

Appendix E1: Mandatory Deed Restriction for State Regulated Rental Projects

Appendix E2: Mandatory Deed Restriction for Rental Projects

Appendix E3: Mandatory Deed Restriction for Rehabilitated Rental Projects

Appendix F: Form of Release (Quitclaim Deed) for Restricted Units

Appendix G: Form of Note for Payment of Recapture Amount for a 95/5 Unit

Appendix H: Form of Mortgage Securing Payment of Recapture Amount for a 95/5 Unit

Appendix I: Form of HAS Municipal Agreement

Appendix J: Form of Certificate for Applicants Certified to Ownership Unit, Required by Section 5:80-26.18(c)(2)

Appendix K: Form of Certificate for Applicants Certified to Rental Unit, Required by Section 5:80-26.18(c)(2)

Appendix L: Form of Recapture Mortgage Note in Favor of State, Required by Section 5:80-26.5(c)

Appendix M: Form of Mortgage Securing Payment of Recapture Note in Favor of the State, Required by Section 5:80-26.5(c)

Appendix N: Form of Recapture Mortgage Note in Favor of Municipality, Required by Section 5:80-26.5(c)

Appendix O: Form of Mortgage Securing Payment of Recapture Note in Favor of the Municipality, Required by Section 5:80-26.5(c)

Appendix P: Form of Recapture Mortgage Note for UHORP and MONI Units, Required by Section 5:80-26.5(c)

Appendix Q: Form of Mortgage Securing Payment of Recapture Note in Favor of the Agency, Required by Section 5:80-26.5(c)