Non-Profit Incentives

Several affordable housing programs make grants and reduced-rate loans exclusively to nonprofit organizations. Additionally, certain competitive programs may be more likely to make funding available to nonprofits than for-profit entities. For example, the National Affordable Housing Act requires that participating jurisdictions set aside at least 15 percent of their allocations through the HOME Program for Community Housing Development Organizations (CHDOs). A CHDO is a nonprofit agency that meets specific criteria outlined in 24 C.F.R. § 92.300. All nonprofit agencies must be certified as a CHDO by the NJDCA in order to be eligible for State CHDO funds.

The following programs are available exclusively to nonprofit developers of affordable housing:

Community Housing Development Organizations Seed Money Loans — Provides pre-development seed money financing to nonprofit organizations actively involved with the development of affordable housing. Administered by HUD. Loans may be used only for project-specific costs. Available only to nonprofit organizations certified as State CHDOs.

Community Services Block Grants — Awards grant funding to public and private nonprofit agencies for the provision of housing and other services to New Jersey’s low-income population. Administered by the U.S. Department of Health and Human Services.

HOME - Community Housing Development Organizations Operating Grants — Provides grants for operating costs for nonprofit organizations certified by the NJDCA as a CHDO and actively involved with the development of affordable housing.

Homeless Transitional Housing Loan Program — Provides private nonprofit organizations and public entities with low-interest financing to acquire and/or convert existing buildings for transitional housing for homeless individuals and families. Recipients are required to provide supportive services to residents to assist transition to permanent housing. Administered by the NJHMFA.

Performance Grants to Nonprofits — Awards grants for operating support for nonprofit organizations developing affordable housing. Applications are received on a rolling basis. Administered by the NJDCA.

Pre-Development Loan Partnership — Provides pre-development seed money loans of up to $50,000 to nonprofit organizations involved in the development of affordable housing. Applicants must demonstrate site control or the ability to obtain site control. Administered by the NJDCA.

Transitional and Permanent Housing Loan Program for Aging-Out Youth — Provides low-interest financing to organizations and public entitles developing service enriched transitional and permanent housing opportunities for youth aging out of foster care programs. Administered by the NJHMFA.