Governor Chris Christie recently signed into law legislation that will expand access to affordable housing for New Jersey veterans. This new program allows owners of affordable housing to give a preference for veterans by entering into a preference agreement with local municipalities.
Under the agreements, developers will be able to provide an occupancy preference of up to 50 percent of units in individual projects to low and moderate-income veterans. Such a preference will not affect the ability of the project to get credit for the unit from the State’s Council on Affordable Housing (COAH).
Developers using the federal Low-Income Housing Tax Credit (LIHTC) in New Jersey will also be able to offer this preference without violating the general public use requirements of the LIHTC program. A provision added to the tax credit laws in 2008 clarifies that a project which otherwise meets the general public use requirements shall not fail to meet the general public use requirement solely because of occupancy restrictions or preferences that favor tenants: (1) with special needs; or (2) who are members of specified group under a Federal program or State program or policy that supports housing for such a specified group; or (3) who are involved in artistic and literary activities. The New Jersey program falls under the second exception noted above.
Developers doing business in New Jersey should keep this new preference in mind while developing future affordable properties.