New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A875

Introduced
1/9/24  

Caption

Requires NJHMFA to allocate certain portion of federal low-income housing tax credits to certain high-opportunity areas.

Impact

The bill is expected to positively impact state laws surrounding affordable housing development by mandating strategic investments in specific communities. By prioritizing locations with better educational performance and lower poverty rates, the legislation seeks to enhance chances for economic mobility among low-income families. The provision of transportation for residents, along with the annual certification requirement for project operators, ensures that the benefits of the tax credits extend beyond mere construction and include ongoing support for community integration.

Summary

Assembly Bill A875 requires the New Jersey Housing and Mortgage Finance Agency (NJHMFA) to allocate a minimum of 30% of federal low-income housing tax credits (LIHTCs) annually to qualified projects in designated high-opportunity areas. This allocation applies to projects that fulfill criteria such as being located in high-performing school districts, areas with a lower than average poverty rate, and proximity to essential community resources including grocery stores and healthcare facilities. Such a requirement aims to support the development of affordable housing in neighborhoods that can provide improved living conditions and access to necessary services.

Contention

While proponents argue that A875 will facilitate greater investment in underserved communities, critics may express concerns about the potential administrative burden it places on the NJHMFA and developers. Some may also worry about the definition of a 'qualified project' and whether the chosen criteria truly target the areas of greatest need or inadvertently favor certain locales over others. The potential for clawback payments if transportation commitments are not met could also lead to apprehensions regarding project sustainability post-construction.

Companion Bills

NJ S325

Carry Over Requires NJHMFA to allocate certain portion of federal low-income housing tax credits to certain high-opportunity areas.

NJ A2759

Carry Over Requires NJHMFA to allocate certain portion of federal low-income housing tax credits to certain high-opportunity areas.

Similar Bills

NJ A5698

Provides supplemental transportation aid to certain districts participating in interdistrict public school choice program.

NJ A1426

Provides supplemental transportation aid to certain districts participating in interdistrict public school choice program.

NJ S787

Provides supplemental transportation aid to certain districts participating in interdistrict public school choice program.

NJ S3920

Provides supplemental transportation aid to certain districts participating in interdistrict public school choice program.

CA AB1469

School transportation.

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NJ A1287

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NJ A5712

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