New Jersey Housing and Mortgage Finance Agency

General Info for Multifamily Developers

Applying and Program Contacts 
For Multifamily Programs, contact: 

Donna Spencer,  Director of Multifamily/Supported Housing and Lending
Phone: 609-278-7622 

UNIAP - Application for Financing 

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.).