Programs & Incentives

These programs provide grants, tax relief and reduced-rate financing to for-profit developers and builders with projects for the construction or restoration of affordable housing.

A. Low Income Housing Tax Credit Program
The Low Income Housing Tax Credit Program (LIHTC) was established by Section 42 of the Internal Revenue Code of 1986 (Code), 26 U.S.C. § 42, and provides tax credits, a dollar for dollar reduction in federal tax liability, for private and nonprofit associations investing in the development of affordable housing. Oversight of the program is handled by each state under the auspices of the Internal Revenue Service.

B. Home Investment Partnerships Program
The Home Investment Partnerships Program (HOME) is a federally funded housing assistance program designed exclusively to create affordable housing for low-income and very-low income households under 24 C.F.R. § 92.205. The HOME program provides grant funding through formula allocation to states and local governments to strengthen public-private partnerships and increase the supply of affordable housing. State and local government agencies that administer HOME programs, or participating jurisdictions, are required to match a portion of federal funds with no federal resources.

C. Housing Opportunities for Persons with HIV/AIDS Program
The Housing Opportunities for Persons with HIV/AIDS Program (HOPWA) was established by HUD to address the specific needs of persons living with HIV/AIDS and their families. The Program provides grants to local communities, States, and nonprofit organizations for projects that benefit low income persons medically diagnosed with HIV/AIDS and their families. The funds are distributed on the basis of a statutory formula that relies on AIDS statistics (cumulative AIDS cases and area incidence) from the Centers for Disease Control and Prevention (CDC).

D. Volume Cap Tax Credits
Volume Cap Tax Credits are generated in conjunction with qualified tax-exempt bond financing under 26 U.S.C. § 142 subject to volume cap restrictions provided in Section 42(h)(4) of the Code. Projects financed by tax-exempt bonds that request Volume Cap Tax Credits pursuant to Section 42(h)(4) of the Code must satisfy LIHTC affordability requirements but Volume Cap Tax Credits are not limited by the State housing credit ceiling and are not allocated on a competitive basis. N.J.A.C. 5.80-33.9.

E. Mortgage Insurance for Rental Housing for Urban Renewal and Concentrated Development Areas: Section 220
This program is authorized by Section 220(a) and (h), of the National Housing Act (24 C.F.R. 200 et seq.). The Section 220 program offers FHA mortgage insurance for lenders approved by the United States Department of Housing and Urban Development (HUD) for multifamily housing projects in urban renewal areas, code enforcement areas, and other areas where local governments have undertaken designated revitalization activities. Eligible mortgagors include private for-profit entities, public bodies, and others who meet HUD requirements for mortgagors.

F. Brownfields Economic Redevelopment Initiative
The Brownfields Economic Redevelopment Initiative is a competitive grant program administered by HUD designed to assist cities with the redevelopment of abandoned, idled and underused industrial and commercial brownfields sites where redevelopment is burdened by environmental contamination. http://www.epa.gov/swerosps/bf/html-doc/econinit.htm

G. Brownfields Tax Incentive
Created in 1997, this incentive makes environmental cleanup costs fully deductible in the year in which they are incurred, rather than having to be capitalized. Those wishing to take advantage of the incentive must receive a certificate of eligibility from their state contact. A list of state contacts, and more information about the incentive, is available at http://www.epa.gov/brownfields/bftaxinc.htm

H. Brownfields Assessment Grants
EPA provides funding of up to $350,000 for state and local governments, redevelopment authorities, and other governmental and quasi-governmental entities to inventory, characterize, assess, and conduct planning and community involvement related to brownfield sites.

I. Revolving Loan Fund Grants
State and local governments can obtain grants from EPA of up to $1,000,000 over five years to capitalize Brownfields Cleanup Revolving Loan Funds. The programs enables governmental agencies to make low interest loans that finance the cleanup of brownfield sites.

J. Cleanup Grants
State and local governments and various governmental and quasi-governmental units that own a brownfields site can obtain up to $200,000 from EPA to carry out cleanup activities.

K. Job Training Grants
Governmental entities and certain non-profit organizations can obtain up to $200,000 to provide training for residents of communities affected by brownfields to facilitate cleanup efforts and prepare trainees for future employment in the environmental field.