N.J. Admin. Code § 5:43-3.7

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:43-3.7 - Preservation, acquisition, moderate rehabilitation projects

(a) Except as noted in (a)1 through 3 below, the Balanced Housing program will provide funding to eligible applicants for the preservation of existing affordable housing, the acquisition of vacant housing for the purpose of making it affordable, and for the moderate rehabilitation of existing units, or any combination thereof.

1. Preservation, without moderate rehabilitation, in a low income census tract, shall not be eligible;

2. Acquisition, without moderate rehabilitation, in a low income census tract, shall not be eligible; and

3. The acquisition or acquisition and rehabilitation of units that are in standard condition and affordable to low and moderate income households, but are not deed restricted, shall be permitted, in so far as the proposed activity will lower the range of affordability or extend the duration of the affordability in accordance with the housing affordability, controls applicable at the time of the transaction.

(b) Sponsors of moderate rehabilitation projects shall be required to demonstrate on-going management capacity and financial feasibility of the project for the length of the control period including, but not limited to, the provision of reserves to ensure timely repair and replacement of any systems not addressed during the initial rehabilitation.

(c) For the purpose of acquisition, at least 70 percent of units in a project must be vacant or currently occupied by a low and moderate income household.

(d) Any structure repaired in whole or in part with Balanced Housing funds must, upon completion, be certified as standard.

(e) The amount of subsidy for preservation shall not exceed the difference between the market value of the property without restrictions and the market value of the property with restrictions as determined by an appraiser, whose method and credentials have been accepted by the Department.

1. Initially, the Department will utilize the New Jersey Housing and Mortgage Finance Agency for the selection and procurement of appraisers, until an equivalent system can be replicated at the Department. Cost for the appraisal will be born by the applicant.

2. To be considered for approval, the appraiser must apply to the Agency, and the application shall include the information required, or demonstrate that the appraiser has the experience, as follows:

i. The completion of appraisals similar to the types of projects funded by the Agency and the Department;

ii. The counties they have done work in and wish to be considered for;

iii. Names and addresses of references;

iv. A copy of the appraisers current New Jersey Appraiser License;

v. A Signed acknowledgement of the Code of Ethics and Mandatory Affirmative Action;

vi. A current copy of the appraisers Errors and Omission policy; and

vii. Sample appraisals for every type of work they seek.

3. An appraiser review committee of three reviews all applications and sample appraisals, and if deemed to have sufficient experience and accepted, the appraiser goes on a computerized rotating selection list;

(f) The Balanced Housing subsidy for a preservation, acquisition, moderate rehabilitation project shall not exceed $ 50,000 per unit.

N.J. Admin. Code § 5:43-3.7

New Rule R.1992 d.144, effective 4/6/1992.
See: 23 N.J.R. 1075(a), 24 N.J.R. 1385(a).
Recodified from 5:14-3.8 and amended by R.1996 d.226, effective 5/20/1996.
See: 28 N.J.R. 6(a), 28 N.J.R. 2573(a).
Former section, "Homeownership projects", recodified to 5:14-3.6.
Amended by R.2002 d.325, effective 10/7/2002.
See: 33 N.J.R. 3261(a), 34 N.J.R. 3500(a).
Rewrote (b) and (d); added (g).
Repeal and New Rule, R.2007 d.202, effective 7/2/2007.
See: 38 N.J.R. 3711(a), 39 N.J.R. 2517(a).
Section was "Acquisition/rehabilitation projects".