On November 14th, NJHMFA sent out the following Developer Bulletin for New Jersey Low Income Housing Tax Credit Projects:

Pursuant to HUD Notice H 2024-09 the implementation date of Notice H 2023-10 (HOTMA) has been revised from January 1, 2025, to July 1, 2025. Please be advised that the following exceptions to the regulation shall serve as NJHMFA Policy regarding LIHTC projects:

• Under $50,000/$51,600 Asset Self-Certification will not be adopted due to the IRS Revenue Procedure 94-65 which only allows self-certification of assets if the Net Family Assets as defined under (eCFR :: 24 CFR 5.603 – Definitions) do not exceed $5,000. Net Family Assets = Non-Necessary Personal Property + Equity in Real Property.

• Third party verification of assets in the 3rd year will not be adopted since Owners of 100% LIHTC projects are permitted to perform self-certifications after the first year full recertification. Owners of mixed use LIHTC projects, in the Initial Compliance period, must continue to perform full recertifications for all LIHTC units per IRS regulation.

• Safe Harbor Method will not be adopted. All sources of income should be third party verified with the usual exceptions such as Social Security Retirement income, etc. where the annual letter would be sufficient.

• Enterprise Income Verification (EIV) System Income Data still cannot be used to verify income for the Low Income Housing Tax Credit Program.

Additionally, the new Asset Questionnaire on our website should be used for all certifications (i.e., Move Ins, Recerts and Initial Certifications) to determine all included/countable assets.

Although the HOTMA implementation date has been extended, if the changes have already been implemented at your property for 2024, the Agency will perform the Tenant File Audit per the HOTMA regulations and NJHMFA’s specific policies as outlined above.

Questions? Need Help?  

****Please contact your Tax Credit Analyst or Natasha Solomon, Manager of Tax Credit Compliance at nsolomon@njhmfa.gov for more information or questions.