New Jersey Housing and Mortgage Finance Agency Board voted to approve an extension of the cost cap waiver to include nine percent projects awarded through the close of calendar year 2021. Nine percent 2021 Projects must provide written justification with backup documentation for the increase in Total Development Costs since application in order to be eligible for the waiver. Owners/developers must provide cost backup for specific construction categories affected by COVID-19, including but not limited to materials, equipment purchasing, appliances, union/labor requirements, specific PPE needs, etc.

The NJ HMFA also approved increasing the limits on Total Developments Costs by ten percent, to be put into effect for 2022 LIHTC applicants. The new caps are:

  • $302,500 per unit for buildings of one to four residential stories;
  • $330,000 per unit for buildings with five or six residential stories; and
  • $357,500 per unit for buildings with over six residential stories.