NJHMFA Launches First of Its Kind Program to Fund Affordable and Workforce Housing Development

NJHMFA Launches First of Its Kind Program to Fund Affordable and Workforce Housing Development

TRENTON, NJ - The New Jersey Housing and Mortgage Finance Agency (NJHMFA) approved the creation of the State Tax Credit Subsidy (STCS) Program at its October 2 board meeting. The STCS Program will incentivize hundreds of millions in private investment through competitive auctions to create billions of dollars' worth of workforce and affordable housing production.On October 27, 2025, NJHMFA will open the first STCS Program Auction authorized by this program. The auction portal will accept bids for 30 days and will be accessible on the NJHMFA website at https://www.nj.gov/dca/hmfa/about/auction/.

Bidders awarded state tax credits can apply them to the Corporate Business Tax or Insurance Premium Tax at any point during the seven years following the credits being purchased at the auction. All qualifying New Jersey businesses are encouraged to participate in this exciting tax savings opportunity, which affords New Jersey taxpayers the opportunity to realize direct, dollar for dollar tax reductions while supporting critical investment in the Garden State."The launch of the State Tax Credit Subsidy Program marks a pivotal step forward in NJHMFA's commitment to expanding access to safe and affordable housing for low-to-moderate income families," said Executive Director Melanie R. Walter. "By creating a competitive and transparent auction for raising funds to subsidize workforce and affordable housing production, NJHMFA is unlocking new opportunities for public-private investment in the communities that need it most. The STCS Program strengthens NJHMFA's financing tools and deepens NJHMFA's impact - ensuring that more families across New Jersey have a place to call home."Over the next five to six years, NJHMFA will sell up to $500 million in state tax credits during competitive auctions, with an annual limit of $100 million in state tax credits sold and at a minimum value of 80% of the tax credit amount. The innovative wholesale tax credit structure will yield in at least $400 million in housing production investment. All investments received from the auction, minus administrative and operational costs, will be deposited into the STCS Program Fund for housing production. "Every person in New Jersey deserves the dignity that comes with having a safe and affordable place to call home, but for too long, that promise has felt out of reach," said Assembly Speaker Craig J. Coughlin. "These tax credits make that dream possible and will spur the development of both affordable and workforce housing by closing critical financing gaps and moving long-awaited projects forward. In doing so, we're strengthening our commitment to helping more families find stability and making New Jersey a more affordable place to live for generations to come."Half of the money in the STCS Program Fund will be reserved for the creation of workforce housing through the Workforce Housing Fund set-aside, and the remaining half will be utilized to continue the landmark Affordable Housing Production Fund to help municipalities meet their housing goals. Both programs require that these gap subsidies are paired with federal 4% Low-Income Housing Tax Credits, also administered by NJHMFA."The people who keep our communities running - teachers, nurses, construction workers, police officers, and so many others - are working hard to make a living, yet still find themselves weighed down by the cost of housing," said Senate Majority Leader M. Teresa Ruiz. "To truly confront New Jersey's housing crisis and ensure every family has a place to call home, we need a comprehensive approach - one that not only expands affordable housing but also creates more options for middle-income families who don't qualify for assistance yet remain priced out. For the first time, these initiatives demonstrate a long-term commitment to building both affordable and workforce housing, giving families more breathing room in their budgets and the opportunity to continue living in their neighborhoods for generations to come. There is no greater investment than ensuring that public servants and other pillars of our communities can afford to live in the very places they devote their lives to serving."The subsidies from the STCS Program will create new affordable homes and middle-income housing - for families earning between 80% and 120% of the area median income - resulting in billions of dollars' worth in total development. The STCS Program does not require new spending by the State of New Jersey, instead deriving its funding from the sale of unused state tax credits previously allocated to the "Brownfields Redevelopment Incentives Program Act," the "New Jersey Aspire Program Act," and the "Emerge Program Act."Workforce and affordable housing subsidy applications will begin to be accepted on a rolling basis this Fall. Applications will be approved based on a project having demonstrated that it meets all eligibility criteria and has secured firm funding commitments from all other financing sources. Since STCS Program funding is contingent upon the sale of state tax credits, subsidy award recommendations will only be presented to the NJHMFA Board for consideration to the extent funds are available.To learn more about the STCS Program Auction, including eligibility and auction details, please visit https://www.nj.gov/dca/hmfa/about/auction/ or reach out to [email protected].

Any businesses interested in participating in the October 27, 2025 auction should get a Tax Clearance Certificate from the New Jersey Division on Taxation, which can be done by emailing [email protected] or calling (609) 322-6835. For information on the STCS Program Fund, please reach out to [email protected].

About Us: The New Jersey Housing and Mortgage Finance Agency (NJHMFA) advances the quality of life for residents of and communities throughout New Jersey by investing in, financing, and facilitating access to affordable rental housing and homeownership opportunities for low and moderate-income families, older adults, and individuals with specialized housing needs. To learn more about NJHMFA, visit: https://NJHousing.gov/