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NJHMFA Launches First-of-Its-Kind Program to Fund Affordable and Workforce Housing Advancement
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TRENTON, NJ – October 27, 2025
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) approved the creation of the State tax Credit Subsidy (STCS) Program at its October 2 board meeting. This innovative program will incentivize hundreds of millions in private investment through competitive auctions, ultimately creating billions of dollars’ worth of workforce and affordable housing.
program launch and Auction Details
On October 27, 2025, NJHMFA will open the first STCS program auction authorized by this program. The auction portal will accept bids for 30 days and will be accessible on the NJHMFA website at [NJHMFA Website Link].
Bidders awarded state tax credits can apply them to the Corporate Business Tax or Insurance Premium Tax at any point during the seven years following the credits being purchased at the auction. All qualifying New Jersey businesses are encouraged to participate in this exciting tax savings opportunity, which affords new Jersey taxpayers the opportunity to realize direct, dollar-for-dollar tax reductions while supporting critical investment in the Garden State.
A Statement from the Executive Director
“The launch of the State Tax Credit Subsidy Program marks a pivotal step forward in NJHMFA’s commitment to expanding access to safe and affordable housing for low-to-moderate income families,” said Executive Director Melanie R.walter. “By creating a competitive and obvious auction for raising funds to subsidize workforce and affordable housing production, NJHMFA is unlocking new opportunities for public-private investment in the communities that need it most. The STCS Program strengthens NJHMFA’s financing tools and deepens NJHMFA’s impact – ensuring that more families across New Jersey have a place to call home.”
Program Scope and investment
over the next five to six years, NJHMFA will sell up to $500 million in state tax credits during competitive auctions, with an annual limit of $100 million in state tax credits available each year.
Key Takeaways
- The STCS Program aims to attract important private investment in affordable and workforce housing.
- The program utilizes a competitive auction process for state tax credits.
- Businesses can apply credits to the Corporate business Tax or Insurance Premium Tax.
- NJHMFA plans to sell up to $500 million in tax credits over the next five to six years.
Frequently Asked Questions (FAQ)
What types of projects are eligible for funding through the STCS Program?
The STCS Program focuses on funding workforce and affordable housing developments. Specific eligibility criteria will be outlined in the program guidelines available on the NJHMFA website.
How can businesses participate in the STCS Program auction?
Businesses can participate by submitting bids through the online auction portal, which will be accessible on the NJHMFA website starting October 27, 2025.
What is the benefit for businesses participating in the auction?
Businesses awarded tax credits can apply them to reduce their Corporate business Tax or Insurance premium Tax liability