STATEMENT TO

 

[Second Reprint]

SENATE, No. 538

 

with Senate Floor Amendments

(Proposed by Senator OROHO)

 

ADOPTED: OCTOBER 29, 2018


 

      These Senate floor amendments clarify that a project that receives a State or federal rent subsidy at the outset, such as a Low Income Housing Tax Credit, but remains subject to affordability controls after the original subsidy expires, may still retain an existing long term tax exemption.  The floor amendments direct that this long term tax exemption extension may occur regardless of whether the replacement affordability controls consist of:

1)      federal or State project-based assistance, such as Section 8 or State Rental Assistance Program funding;

2)      compliance with the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Finance Agency; or

3)      rent and income limits established by the federal Low Income Housing Tax Credit program.