Housing Production Investment Fund 2025

The "HOME Housing Production Investment Program" is designed to provide funding for the creation of affordable housing units for low-income households as defined by the U.S. Department of Housing and Urban Development (HUD). This program seeks to increase the availability of affordable housing by supporting development projects led by both non-profit and for-profit affordable housing developers. The available funding is variable, and the specific amount awarded depends on federal per-unit subsidy limits and the financial gap of the project. The grant can be used to cover capital costs related to the development of affordable housing projects. These costs include construction, professional and financing fees, and acquisition expenses, among others. However, the program has strict limitations on how the funds can be used. Ineligible activities include the development or operation of public housing, projects previously funded by HOME, acquisition of vacant land without development plans, and those anticipating funding from other state housing programs. Eligible applicants are primarily non-profit and for-profit developers experienced in affordable housing development and management. They must demonstrate financial capacity, experience with the target low-income population, and strong relationships with financial institutions. Additionally, applicants must be in good standing with relevant state and federal agencies, including the New Jersey Department of Community Affairs (DCA) and HUD. Applications must include a detailed narrative of the proposed project, a comprehensive budget with leveraged resources, and various supporting documents. All submissions are processed through the DCA's electronic system, SAGE, and reviewed on a rolling basis. Applicants are notified of funding decisions within 120 days of submitting a complete application. Projects funded through this program are subject to long-term affordability restrictions, ranging from 5 to 30 years, depending on the type of project, the amount of subsidy, and the location. Homeownership projects have similar restrictions, with affordability requirements based on the amount of subsidy received. The evaluation of applications is based on several criteria, including the capacity of the applicant to manage the project, the alignment of the project with program requirements, and the project's compatibility with the surrounding neighborhood. Points are awarded for municipal contributions, such as financial support or land donations, as well as the inclusion of amenities, energy efficiency standards, and the provision of social services. Projects are also evaluated based on the stability of the neighborhood and the accessibility of essential services. This opportunity is suitable for developers focused on creating sustainable, affordable housing for low-income families, with the potential for significant community impact through increased housing availability and extended affordability controls.