The New Jersey Housing and Mortgage Finance Agency (NJHMFA) invites New Jersey businesses to participate in an upcoming State Tax Credit Auction.
The auction will open on April 15. NJHMFA will accept bids from April 15 to May 15. Revenue generated from the winning bids will be utilized to fund affordable and workforce housing.
NJHMFA will sell up to $100 million in New Jersey State tax credits to eligible businesses.
Interested parties may learn about the bidding process online at the NJHMFA auction website.
The State Tax Credit Subsidy (STCS) Program enhances NJHMFA’s ability to create access to safe and affordable housing for low-to-moderate income New Jersey families. By creating an auction to raise funds for subsidized production of workforce and affordable housing, NJHMFA is unlocking new opportunities for public-private investment across New Jersey.
The STCS Program further diversifies NJHMFA’s financing tools and deepens NJHMFA’s impact, ensuring that more families across New Jersey have a place to call home.
“The State Tax Credit Auction affords NJHMFA a vital means to raise the money needed to create more affordable and workforce housing across the state,” said Executive Director Melanie R. Walter. “This program pairs tax relief for New Jersey businesses with core housing programs that exist to make the state a more affordable place for New Jersey families to live. It’s an unconventional, but mutually beneficial opportunity.”
The upcoming auction will be the first STCS auction in 2026. If all of the tax credits are purchased in the upcoming auction, it will be the only one in 2026.
The minimum bid price per tax credit is 80 cents on the dollar. Awarded state tax credits will be applicable to the Corporate Business Tax or Insurance Premium Tax starting with the 2026 tax period. Any unused credits can be carried forward for use in the next seven years.
Half of the revenue from the auction will be dedicated to help municipalities meet their affordable housing goals. The other half will be utilized for the production of workforce housing. All program funds will be paired with federal 4% Low-Income Housing Tax Credits, also administered by NJHMFA.
The STCS Program will create new affordable homes for low-income families earning less than 60% of the area median income, and middle-income workforce housing for families earning between 80% and 120% of the area median income. By leveraging LIHTC and other funding resources, the STCS Program will produce billions of dollars in housing opportunities across New Jersey.
Applications for workforce and affordable housing subsidies from STCS Program funds will open once adequate funding is available. 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.
