DCA will accept proposals for these funds on a rolling basis through an open Request for Proposals in the System for Administering Grants Electronically (SAGE). One unified application will be available for all three funds.

Eligible applicants include municipalities, for-profit and non-profit housing sponsors, individuals, corporations, and limited partnerships, etc.

Creation of affordable rental housing or homeownership units in developments of 25 units or fewer (targeted to households below 80% of Area Median Income). Eligible activities include acquisition and new construction, reconstruction or renovation of affordable rental housing or homeownership units. Eligible costs include hard costs, soft costs and developer fees as outlined in the Affordable Housing Trust Fund Guidelines. Funds can also be used to cover a lease-up reserve as detailed in the Guidelines. Ineligible costs include

• Project reserve accounts
• Development, operations or modernization of public housing
• Project or tenant-based rental assistance
• Payment of delinquent taxes, fees, fines or charges
• Payment of court-ordered judgments or governmentally imposed fines
• Projects that can be funded from other sources

The maximum subsidy available per project through the Municipal Settlement and Neighborhood Partnership Funds is $6,000,000. The maximum subsidy available per project through the Innovation Fund is $2,000,000. Financing will be structured as a soft second amortizing loan at 1% with a term equal to the affordability control period. Annual repayment is 50% of cash flow, if available. Developer’s fee will not exceed 8% of the project’s total development cost.

Projects must meet the requirements listed above, as well as the following:

• All financial sources must have written commitments
• Projects must be financially feasible as determined through DCA underwriting
• Debt coverage ration must be at least 1.2
• Projects must be completed within two years
• Projects must not be in a floodplain or environmentally sensitive area
• Applicant must be in good standing with NJ and the U.S. Department of Housing and Urban Development (HUD) if applicable
• Project must provide proof of site control (deed, contract of sale, option agreement, etc.)
• Project must provide original sealed resolution of support from applicant’s board
• Project must provide original sealed municipal resolution of support
• All projects must be permanent housing, and housing may not be contingent upon acceptance of supportive services
• Projects must use the NJ Housing Affordability Service as their Administrative Agent
• Projects must use the NJHMFA Resource Center and be affirmatively marketed
• Projects must follow the Uniform Housing Affordability Controls (UHAC)
• Projects participating in the Municipal Settlement Fund must demonstrate investment from the municipal Affordable Housing Trust Fund and/or other municipal investment (donation of land, etc.)

DCA will review and approve applications based on the following criteria:

Organizational capacity and strength of the development team - The applicant’s capacity and successful experience in developing and managing affordable housing projects will be crucial in ensuring that funds are obligated quickly and that projects are successfully completed in a timely fashion. Applications must demonstrate the following:

• • Applicant has experience in developing affordable housing
  • Applicant has demonstrated financial ability to develop the project
  • Applicant has demonstrated successful experience in quickly and efficiently achieving housing objectives through DCA or other similar housing development programs
  • Applicant has no loan findings or other outstanding issues with DCA or HUD
  • Project timeline is feasible, and project will be completed within two years of award
  • Project budget is feasible and reasonable

State priorities -- In addition to the criteria above, projects will be prioritized based on the following criteria:

• • Leverage provided
  • Sustainability/resilience
  • Walkability
  • Mixed use
  • Accessibility
  • Projects addressing gentrification
  • Projects providing deeper affordability, such as those targeting households earning less than 50% of AMI
  • Projects providing family housing, especially those providing units for larger families based on need in the community

For Municipal Settlement Fund projects, additional priorities include

• • Location of project in areas with employment opportunities, access to transit and educational opportunities
  • Projects serving targeted populations for which the municipality has determined an enhanced need (such as homeless families, people with special needs, etc.)

For Neighborhood Partnership Fund projects, additional priorities include:

• • Documented demonstration of coordinated state investments from DCA or other state agency projects, such as:
  • Neighborhood Preservation Program (DCA)
  • Neighborhood Revitalization Tax Credit Program (DCA)
  • Main Street Program (DCA)
  • Transit Villages (Department of Transportation)
  • Local Aid and Economic Development (Department of Transportation)
  • Opportunity Zone Challenge Grant (Economic Development Authority)
  • 21^st Century Redevelopment Program (Economic Development Authority)
  • Other State agency investments; and
  • Partnerships with private sector investors such as:
    • Community Development Financial Institutions
    • Philanthropic Foundations
    • Anchor institutions such as hospitals
    • Other private partners

Supportive housing projects and projects serving people who are homeless, seniors, and people with other special needs are encouraged in all three funds.

Additional Requirements

Please see the Affordable Housing Trust Fund Guidelines for more information about requirements and the process. DCA reserves the right to distribute projects equitably throughout the state. Please note that in addition to requirements in the Guidelines, all projects must meet the requirements of the Neighborhood Preservation Balanced Housing Rules N.J.A.C. 5.43-1.1 et seq. AFFORDABLE HOUSING TRUST FUND PROGRAM (AHTF) - PROGRAM GUIDELINES AND PROCEDURES

• DCA will hold a kickoff webinar to discuss the funds and the application process. Registrations for the webinar will be taken through the DCA website. Questions may be sent to AffordableHousing@dca.nj.gov. Prior to application submission, interested applicants may submit pre-applications (on DCA website) to AffordableHousing@dca.nj.gov and staff will contact you to discuss potential projects.
• Applications will be available through SAGE and will be reviewed on a rolling basis. Once received, staff will review applications to ensure they meet threshold requirements. Projects that meet threshold will move to underwriting. Staff will schedule meetings with the development team, as well as a site visit, as part of project review.
• Once the project has completed underwriting and project review, staff will make funding recommendations to the Commissioner of DCA. The Commissioner will have final approval.
• DCA anticipates that funding decisions will be made within three months of application submission.