Tagged: Tax Credits

“Housing is Health Care”: New Jersey HMFA Launches Program for Supportive Housing Partnership with Hospitals

“Housing is Health Care”: New Jersey HMFA Launches Program for Supportive Housing Partnership with Hospitals

The New Jersey Housing and Mortgage Finance Agency (HMFA), in collaboration with the New Jersey Hospital Association, has announced a pilot subsidy program to promote investment by hospitals throughout New Jersey in affordable and supportive housing. The program was previously endorsed by the New Jersey Hospital Association’s Board of Trustees. Following a number of recent studies highlighting the interconnection between stable, safe, and affordable housing and maintaining a higher quality of life, HMFA created a partnership program for New Jersey’s hospitals and affordable housing developers to try and fill a notable void in supportive housing. Hospitals are encouraged to work with developers to target housing for special needs residents or users of frequent emergency room services. HMFA anticipates the projects would consist of 60-70 units and can include mixed-use space for doctors’ offices, clinics, or other community uses. Approximately ten of the units would be set aside for low-income households (50 percent of gross median income), and the remainder would be restricted to households of moderate income (80 percent of gross median income). The program, currently funded with $12 million, seeks to match funding contributions from hospitals up to $4 million to fund three or four projects in New Jersey. The...

Update: U.S. Treasury Approves New Jersey’s Opportunity Zones

Update: U.S. Treasury Approves New Jersey’s Opportunity Zones

This article was originally posted on the Gibbons Government & Regulatory Affairs Alert, maintained by the firm’s Government & Regulatory Affairs Department. Attorneys in the Real Property Department work closely with our government and regulatory affairs attorneys in connection with this and similar legislation, grants, funding, and other economic development and redevelopment opportunities. Douglas J. Janacek is Chair of the Gibbons Real Property Department.

New Jersey HMFA Announces 2018 Tax Credit Round – Applications Due July 24, 2018

New Jersey HMFA Announces 2018 Tax Credit Round – Applications Due July 24, 2018

The New Jersey Housing and Mortgage Finance Agency (HMFA) announced Tuesday that it is now accepting applications for federal low-income housing tax credits (“LIHTC”) for the development of family, senior, and supportive housing projects throughout New Jersey. This announcement relates to the competitive LIHTC, which provides a 9% tax credit as a mechanism of funding construction of affordable housing in New Jersey. HMFA has announced that there is a funding tranche of approximately $28 million dollars in LIHTC funding available. Applications for the family, senior, and supporting housing rounds are due July 24, 2018 at noon. Cameron W. MacLeod is an Associate in the Gibbons Real Property Department.

New Jersey Future Report: Changes to Low Income Housing Tax Credit Selection Criteria Change Locations of Affordable Housing Development

New Jersey Future Report: Changes to Low Income Housing Tax Credit Selection Criteria Change Locations of Affordable Housing Development

In 2013, the New Jersey Housing and Mortgage Finance Agency made significant changes to the Qualified Allocation Plan (QAP), putting in place caps on development in areas with significant concentrations of poverty and adding additional criteria to encourage development in areas that would grant low- and moderate-income families a better chance at greater economic opportunity. Specifically, these changes encouraged development in transit oriented districts and areas with ready access to public transit, as well as encouraging development in areas with high-quality, well performing schools. In a recent study, New Jersey Future has found that these changes to the QAP have effectively implemented a policy shift in moving a significant amount of affordable housing construction out of poverty-stricken areas and reallocating such construction to more suburban areas of the State. Prior to 2013, roughly half the tax credits awarded were for economically distressed areas; after the changes to the QAP, that allocation is down to approximately 20%. More projects are being awarded tax credits in suburban areas with transit access and quality schools due to these changes in statewide policy as announced in the QAP, and this trend will likely make the limited number of tax credits allocated to urban areas...

N.J.’s Proposed Changes to Low Income Housing Tax Credit Qualified Allocation Plan Limit Projects per Developer and Encourage Development in Smart Growth Areas 0

N.J.’s Proposed Changes to Low Income Housing Tax Credit Qualified Allocation Plan Limit Projects per Developer and Encourage Development in Smart Growth Areas

The N.J. Housing and Mortgage Finance Agency (“HMFA”) recently proposed changes to the Low Income Housing Tax Credit (“LIHTC”) Qualified Allocation Plan (“QAP”). State housing credit agencies, like HMFA, are required to create plans which outline the selection criteria for awarding tax credits for the development of low- and moderate-income housing. The proposed amendments update the QAP to reflect procedural changes to the way in which affordable housing is constructed, but also include some substantive changes to both the allocation of tax credits among developers and the scoring system for awarding tax credits.

New York DEC Finalizes Definition of “Underutilized” Under Brownfield Cleanup Act Amendments 0

New York DEC Finalizes Definition of “Underutilized” Under Brownfield Cleanup Act Amendments

On July 29, 2016, the New York State Department of Environmental Conservation (“DEC”) announced that it had finalized the definition of “underutilized” for purposes of the 2015 Brownfield Cleanup Act Amendments and eligibility for redevelopment tax credits. The final rule closely tracks DEC’s March 9, 2016 proposed definition, which attracted numerous comments, mostly adverse, from members of the public and the regulated community.

NYSDEC Hears Comments on Proposed Definition of “Underutilized” 0

NYSDEC Hears Comments on Proposed Definition of “Underutilized”

On July 29, 2015, the New York State Department of Environmental Conservation (NYSDEC) conducted a public hearing on its proposed definition of an “underutilized” site for purposes of the 2015 Brownfield Cleanup Act Amendments. As indicated in a prior blog, this definition is critical because being “underutilized” is one of the few ways that a New York City brownfield site can qualify for tangible property credits under the 2015 Amendments.

2015 Amendments to New York State Brownfield Cleanup Program 0

2015 Amendments to New York State Brownfield Cleanup Program

After a number of failed attempts over the past several years, the New York State Legislature and Gov. Andrew Cuomo reached agreement as part of the 2015-16 state budget on sweeping amendments to the New York State Brownfield Cleanup Program (BCP). This achievement is significant in light of the scheduled expiration of tax credits under the program on December 31, 2015. The attached article published by Bloomberg BNA, reprinted with permission, and co-authored by David J. Freeman, reviews the key elements of the amended statute, evaluates their significance and identifies some of the important unresolved issues that will need to be addressed in implementing the new law.

New York State Governor and Legislature Reach Agreement on Reform and Extension of Brownfield Cleanup Program 0

New York State Governor and Legislature Reach Agreement on Reform and Extension of Brownfield Cleanup Program

Governor Andrew Cuomo and leaders of the New York State Senate and Assembly have reached an agreement with respect to extension and reform of the State’s Brownfield Cleanup Program (BCP), a significant development in view of impending expiration of tax credit eligibility on December 31, 2015. The essential elements of the deal are as follows: All sites currently in the Program, and those which are admitted prior to December 31, 2022, will be eligible for tax credits if they obtain their Certificates of Completion (COCs) by March 31, 2026.

Governor Cuomo Proposes Major Changes to State Brownfield Cleanup Program 0

Governor Cuomo Proposes Major Changes to State Brownfield Cleanup Program

In his budget proposal unveiled on January 21, Governor Andrew Cuomo included recommendations that would significantly change the New York State Brownfield Cleanup Program. Among the revisions he has recommended to the Legislature are the following: The deadline for sites to obtain their Certificates of Completion (COCs) in order to be eligible for tax credits under the Program would be extended until December 31, 2025. However, sites currently in the Program will need to obtain their COCs by December 31, 2017 to qualify for the existing level of tax credits. For sites admitted to the Program after April 2015, tangible property (development) credits would be available only for sites in environmental zones, sites where the projected cost of cleanup exceeds the value of the property as clean, or sites containing affordable housing. For sites meeting these criteria, tax credits would potentially be increased from current levels. However, sites not meeting these criteria would be ineligible for any type of development-related tax credit.