ASSEMBLY HOUSING AND COMMUNITY DEVELOPMENT COMMITTEE

STATEMENT TO

[Third Reprint]

SENATE, No. 538

STATE OF NEW JERSEY

DATED:  JUNE 6, 2019

      The Assembly Housing and Community Development Committee reports favorably Senate Bill No. 538 (3R).

      This bill permits a municipal governing body to extend long term tax exemptions granted to certain low-income housing projects.  Specifically, the bill provides 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 retain an existing long term tax exemption if the municipality agrees to the extension.  The extended tax exemption time frame is limited to the number of years that the project remains subject to affordability controls pursuant to:

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.