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New Jersey sells $40M in tax credits for affordable and workforce housing
After a successful spring auction, NJHMFA plans a second $60M offering from Oct. 16 to Nov. 30 to help close financing gaps and expand development through 2030.
New Jersey’s Housing and Mortgage Finance Agency (NJHMFA) has sold $40 million in state tax credits to corporations to finance affordable and workforce housing developments, which it says is the nation’s first program of its scale by any state. HousingWire reports the effort is designed to increase housing supply by attracting private investment to projects across New Jersey. NJHMFA says demand for the inaugural spring 2026 auction was strong, prompting an additional auction for approximately $60 million in state tax credits. The second sale is scheduled to run from Oct. 16 through Nov. 30, with proceeds intended to continue supporting affordable and workforce housing development through 2030. Under the program, eligible businesses bid on tax credits with a minimum bid of 80 cents on the dollar, and the average winning bid in the spring auction was 87 cents on the dollar. Awarded credits can be applied to the Corporate Business Tax or the Insurance Premium Tax, and unused credits can be carried forward for up to seven years. HousingWire also notes that the proceeds are split, with half going toward helping municipalities meet affordable housing obligations and the other half funding workforce housing for middle-income families. All projects are required to use federal 4% Low-Income Housing Tax Credits administered by NJHMFA.