National Housing Trust Fund 2025

The National Housing Trust Fund (NHTF) is an affordable housing production program, overseen by the New Jersey Department of Community Affairs (DCA). It aims to expand and preserve the supply of rental housing for extremely low-income households, defined as those earning 30% or less of the area median income (AMI). The maximum award per application is $1,000,000, and the per-unit subsidy is capped according to the size of the housing unit. Eligible applicants for NHTF funding include non-profit and for-profit affordable housing developers who demonstrate strong financial, organizational, and developmental capacity. The program focuses on activities such as acquisition, moderate or substantial rehabilitation, and new construction of rental housing. However, certain project types are ineligible, such as condominiums, homeowner associations, single-room occupancy (SRO) projects, homeownership projects, and any project receiving other funding from the DCA or New Jersey Housing and Mortgage Finance Agency (NJHMFA). A key requirement for NHTF-funded projects is that no more than four units can be developed per project. Additionally, projects must be completed within two years of the funding award, and must not be located in floodplains or environmentally sensitive areas. To apply, developers must provide proof of site control, meet a debt coverage ratio of at least 1.2, and ensure that the project is financially feasible. A significant portion of the evaluation process focuses on the applicant’s prior experience with affordable housing and their ability to complete the project in a timely and compliant manner. Applications are evaluated based on various criteria, with 100 total points available. These include geographic diversity, with priority given to projects located near public transportation and essential services, as well as those in areas of high opportunity. Projects serving special needs populations, such as individuals with disabilities, homeless veterans, or those re-entering the community after incarceration, also receive high priority. Other factors considered include the applicant's capacity to manage the project, financial stability, and previous experience with the DCA or HUD programs. NHTF funds can only be used for certain eligible costs, which include acquisition, site preparation, construction materials, labor, and soft costs like architectural fees and environmental reviews. A lease-up reserve can be funded, but it is limited to three months and can only cover specific operating expenses. Ineligible costs include project reserve accounts, tenant-based rental assistance, payment of delinquent taxes, and development of public housing. The affordability period for NHTF projects is a minimum of 30 years, during which the units must remain affordable to extremely low-income households. Developers must comply with state and federal property standards, including energy efficiency and green building requirements. Each project will be closely monitored by the DCA throughout its development, including environmental reviews and construction inspections. Additionally, developers must ensure that all units are marketed fairly, with outreach to populations least likely to apply. Overall, the NHTF program is intended to meet New Jersey’s priority housing needs, with a particular emphasis on helping vulnerable populations secure stable, affordable housing in high-opportunity areas.