2022
ANNUAL REPORT

Investing in People, Changing Lives.

INVESTING IN OUR TEACHERS

INVESTING IN OUR NURSES

INVESTING IN OUR FAMILIES

INVESTING IN OUR FIRST RESPONDERS

INVESTING IN OUR SENIORS

2022

2022 was a time of significant change for the affordable housing community.
With public attention and market volatility came both unique financial and operational challenges and a window of opportunity to impact the lives of the many New Jerseyans in need of an affordable place to call home. New Jersey Housing and Mortgage Finance Agency (NJHMFA) met the moment, collaborating across the sector to advance lasting solutions to exigent market conditions as
well aslong-term affordable housing needs.

This 2022 Annual Report offers NJHMFA a chance to provide a retrospective
on the year’s work, reflecting on the major policies and programs developed during this year, some new initiatives moving forward, and the work our development partners have completed during the 2022 calendar year.
NJHMFA is proud of how far we've come and are focused on where we're
going—ever committed to building a stronger, fairer, and more affordable state.

On June 30, 2022, Governor Phil Murphy signed the Fiscal Year 2023 Budget
into law. This annual state budget included a $305 million investment in a new affordable housing production program: the Affordable Housing Production
Fund (AHPF). The program is already off to a solid start. It opened before the
close of the year, and applications streamed in the door, demonstrating the
high demand for affordable housing subsidy resources to help make municipal
fair share plans come to fruition. By 2025, NJHMFA expects this program to finance more than 3,000 new apartment units and to add more than 500 new special needs units, including a set aside for individuals transitioning out of homelessness. In total, the AHPF will help double the state's multi-family
housing production over the next three years and will create thousands of
housing opportunities for New Jersey families.

During 2022, NJHMFA awarded Low-Income Housing Tax Credits (LIHTC) to
32 new projects, generating $421,989,445 in equity. NJHMFA’s LIHTC awards
led to the creation of 2,607 affordable units with a total development cost of $988,027,751. NJHMFA also financed seven projects through the conduit
bond program, which will preserve another 1,163 affordable units.

Additionally, to advance administration housing policy priorities, NJHMFA established multiple new programs and amended the Special Needs Housing
Trust Fund Guidelines to maximize the impact of all targeted subsidy dollars, producing 269 special needs beds in 2022 alone. $40 million in Affordable Housing Gap Subsidy Program (AHGS) funds were allocated to offset increased construction costs and to bridge funding gaps resulting from the pandemic and supply chain disruptions. This program is supporting 23 projects in the creation
of 1,300 affordable units. Given the success of these targeted interventions,
an additional $60 million in subsidy has since been authorized to address
project needs in 2023.

NJHMFA's $25 million hurricane relief Capital Improvement and Assistance Program (CIAP) expansion was also a major success. The program rapidly addressed Hurricane Ida distress in the multifamily housing space,
making these efforts first-in-the-nation interventions.

Beyond these multifamily initiatives, NJHMFA has made excellent progress in advancing homeownership opportunities across New Jersey. For families
looking to buy a home, saving enough money for a down payment is a considerable hurdle, one that grows higher as rents, grocery bills, and home prices continue to climb. That is why NJHMFA worked with the Governor and the Legislature to increase the annual budget allocation for the Down Payment Assistance Program from $20 million to $25 million. This investment in New Jersey
first-time homebuyers allowed the Agency to increase down payment assistance to $15,000 in counties where housing prices have increased the fastest so that first-time home buyers aren't priced out of the market, while retaining a
$10,000 DPA in areas where that remains sufficient to support down payment needs. NJHMFA has also been able to use a portion of these funds to support
rate buy-downs, helping to make our mortgage interest rates more competitive for first-time homebuyers, thereby saving them hundreds of dollars each month.

These programmatic changes and the expansion of NJHMFA's programming
to include conventional mortgage products have spurred rapid growth of the NJHMFA market share, particularly in the state's high-cost-of-living communities. In 2022, NJHMFA administered nearly 2,000 first mortgages, providing over $435 million in new home loans for low- and moderate-income first-time homebuyers. Cumulatively, NJHMFA has expanded first-time homebuyer opportunities at a time when the national share of homes purchased by first-time homebuyers dropped from 34% in 2021 to 26% in 2022. But, most importantly, each of those mortgages supported a family's attainment of the American dream. NJHMFA is honored to support these families and pleased to report that the Agency has supported a far more diverse and lower-income borrowing population than
other mortgage institutions, even in this most challenging of homebuying markets.

While NJHMFA is excited to support the growth of homeownership opportunity, the Agency is also mindful of its responsibility to support those in need of help
to retain their homes. New Jersey homeowners who have been financially affected by COVID-19 are able to apply for up to $75,000 per household to help bring their mortgages and other housing-related expenses current through the Emergency Rescue Mortgage Assistance (ERMA) program. ERMA deploys federally allocated Homeowner Assistance Funds to assist eligible homeowners who have been financially affected by COVID-19. In 2022, NJHMFA awarded more than $30,000,000 to more than 1,200 families.

With all this in mind, NJHMFA invites you to join the Agency in 2023 in reflecting on the many faces of affordable housing. Affordable housing serves countless friends, family members, and neighbors: nurses, essential workers, senior
citizens, young families, recent graduates, and many more. NJHMFA is
dedicated to supporting programs and developments that advance each
New Jersey resident's quality of life and afford individuals and families
new opportunities to thrive here in the Garden State. NJHMFA looks forward
to continuing to advance this mission with its partners in the year ahead.

Lt. Governor Sheila Y. Oliver
In Memoriam 1952-2023
DCA Commissioner & NJHMFA Board Chair (2018-2023)

It is with heavy hearts that we remember the indomitable spirit and unwavering commitment of Lieutenant Governor Sheila Y. Oliver. As the Chair of the NJHMFA Board, Lieutenant Governor Oliver was a steadfast champion for affordable housing, tirelessly working to ensure that every New Jerseyan had access to safe and affordable homes. Her leadership and dedication inspired us all, and her legacy will forever be woven into the fabric of our mission to provide housing opportunities for all. Lieutenant Governor Oliver's enduring impact on our community will continue to shine as a beacon of hope and progress.

NEW JERSEY INVESTING IN PEOPLE, CHANGING LIVES.

Melanie R. Walter

Executive Director

AGENCY IMPACT

The forefront of housing development and policy

NJHMFA

Beginning with our inception in the late 1960s, the New
Jersey Housing Finance Agency (NJHFA) and the New
Jersey Mortgage Finance Agency (NJMFA) championed the creation of homes for families seeking affordable rental housing; development of independent living for people
with disabilities; provision of stable homes for seniors
on fixed incomes; and homebuyer assistance programs.

More than three decades after the merger of these two
highly specialized entities on January 17, 1984, NJHMFA is
at the vanguard of housing development and policy in the state of New Jersey. NJHMFA offers a variety of strong
loan financing and bond programs; life-changing mortgage, down payment and closing cost assistance; and highly effective, competitive allocations of Low-Income Housing
Tax Credits to expand access to housing that is affordable
to all New Jersey residents.

ERMA

Emergency Rescue Mortgage Assistance

illustration of family under roof protected from covid

A Helping Hand for Homeowners in Need.

In February of 2022, NJHMFA launched the ERMA program to provide mortgage reinstatement, property tax delinquency relief, and monthly mortgage payment assistance. The program is available for homeowners who have struggling to make their monthly payments due to a COVID-related hardship. After an initial ramp up period, the Agency began funding this assistance through forgivable loans. By the end of 2022, NJHMFA had helped 1219 homeowners save their homes, deploying $25.8 million in program awards. The program is expected to continue through 2026. Consistent with U.S. Treasury requirements, this program is targeted
toward low- and moderate-income homeowners. As of December 2022, 91% of the families that received funding earn less than 100% of the Area Median Income, and 67% of families receiving assistance identify as “Socially Disadvantaged,” underscoring NJHMFA’s persistent efforts to empower the individuals and
families most in need.

HOMEOWNERSHIP

Builds Stonger Communities

KYLE & KIRI

NJHMFA approved lenders utilized the Down Payment
Assistance Program to help first time homebuyers achieve
their dream of home ownership.

Empowering First-Time Homebuyers

In a challenging housing landscape where homeownership often seems like an unattainable dream, NJHMFA is a guiding light for first-time homebuyers NJHMFA's First-Time Homebuyer Mortgage Program is the foundation of this mission, offering New Jersey first-time homebuyers competitive 30-year, fixed-rate government-insured loans, whether FHA/VA/USDA or conventional. This program simplifies the home buying process and makes it accessible to those who might otherwise struggle to enter the housing market.
In 2022, as market conditions made it more difficult for first-time homebuyers
to purchase homes, NJHMFA’s programs became essential to accessing these opportunities. During this period, in which the national share of first-time homebuyers declined from 34% in 2021 to 26% in 2022, NJHMFA went from helping 6.9% in 2021 of all New Jersey first-time homebuyers to 13.9% in 2022.

The biggest challenge for many first-time homebuyers is the upfront costs, such as down payments and closing costs. NJHMFA addresses this hurdle with its
Down Payment Assistance (DPA) Program, which can be seamlessly combined with the First-Time Homebuyer Mortgage Program. This DPA Program provides qualified buyers with up to $15,000 as an interest-free, five-year forgivable second loan, without monthly payments, helping buyers cover critical
expenses associated with purchasing a home.

NJHMFA's DPA Program isn't just about finances; it represents a commitment to the future of New Jersey's communities. By relieving the financial burden of
down payments and closing costs, NJHMFA empowers individuals and families
to invest in their futures, contribute to neighborhood stability, and become
proud homeowners in the Garden State.

By providing competitive mortgage options and empowering individuals with down payment and closing cost assistance, NJHMFA is fostering
homeownership and building stronger, more resilient communities.

In September 2022, NJHMFA expanded its New Jersey's
first-time homebuyers down payment assistance program to $15,000.

AFFORDABLE HOUSING
MULTIFAMILY

Essential for a strong community

BUILDING

hand holding a home cutout over sunburst

STRONG

New Jersey Housing & Mortgage Finance Agency

COMMUNITIES

2022 Commitments to Financing

Affordable rental housing serves as the bedrock upon which strong, thriving communities are built. The quality and accessibility of housing play pivotal roles in shaping the health, safety, and vibrancy of our neighborhoods. Moreover, housing is intricately intertwined with families and the communities they call home, influencing and being influenced by their surroundings. In line with these principles, NJHMFA remains steadfast in its commitment to ensuring our investments serve as catalysts, seamlessly blending with existing community resources, elevating market value, and enriching the well-being of our communities.

NJHMFA's Low Income Housing Tax Credit Program:

9 Percent Allocations:
In 2022, NJHMA’s 9 percent LIHTC allocations, which are awarded on a competitive basis, supported the development of 1,777 high-quality affordable apartments in desirable locations. The highly sought-after tax credits made these projects possible by generating $278,783,773 in equity that was adeptly combined with other NJHMFA and external financing, to create $591,445,075 worth of development. These initiatives played a pivotal role in expanding affordable housing options across New Jersey, making a significant impact on the lives of many.

4 Percent Allocations:
Through various new programs, NJHMFA expanded the scope and scale of its 4 percent tax credit program, including the new construction of fully affordable projects across the state. Four percent production programs facilitated the development of 1,356 units using $143,205,672 in tax credit equity. Elegantly paired with other NJHMFA and external funding sources, this resulted in a combined total development cost of $396,572,676. This increased the availability of affordable housing for those in need increasing the housing available in communities throughout New Jersey.

The numbers reflect the results of NJHMFA’s persistence in the face of market headwinds throughout 2022. As NJHMFA reflects upon these milestones, the Agency renews its pledge to foster vibrant, healthy communities through strategic investments, meaningful partnerships, and an unwavering dedication to ensuring equitable housing access for all. NJHMFA remains unwavering in shaping a brighter housing landscape in New Jersey, realizing our vision of stronger, more resilient communities where every family can find a secure and affordable place to call home.

LOW-INCOME HOUSING TAX CREDITS

LIHTC

2022 9% LOW INCOME HOUSING TAX CREDIT AWARDS

Dover Veterans

Dover | 68 units

Dover Veterans is a family-oriented development providing
70 homes, including four accessible units for people with disabilities and five set aside for homeless individuals. With a
mix of one-bedroom, two-bedroom, and three-bedroom apartments, families of all sizes can find an affordable place to
call home. Veterans receive preference in one fourth of the units, and Triple C Housing provides on-site supportive services to those who need it. Dover Veterans furthers NJHMFA’s goal of sustainable development, with each apartment featuring modern and energy-efficient appliances. The housing complex forms a major part of the town’s redevelopment plans, creating over a hundred jobs and transforming a largely vacant parking lot into dozens of affordable homes for residents from all walks of life.
Centrally located in Dover’s downtown, residents enjoy easy access to schools, jobs, grocery stores, health services, parks, shops, the train station, and more. This project helps provide a lifeline to our veterans at a time when nearly 500 across the
state remain homeless.

Evan Francis Estates

Cherry Hill | 54 units

Evans Francis Estates is a new family-oriented development, providing a community of 54 townhomes and garden apartments spread across a 4.2-acre site. Not only are all units affordable
to households making below 60% of the area median income,
but seven units are set aside to house homeless individuals
and families. With on-site activity rooms, a playground, an education center, and a community building, the Estates feels
like a true community. Nestled in a quiet suburban neighborhood, residents can walk right outside to forests and fields or take a quick driveto Route 70, Route 73 or I-295. Evans Francis Estates
is a prime example of NJHMFA’s dedication to creating new affordable housing opportunities in communities which
have historically lacked them.

2022 Special Needs Only Projects

Matheny Far Hills
Supportive Housing and Peapack Road II
Supportive Housing

Far Hills | 8 units

Two newly constructed group homes in Far Hills are addressing the housing needs of individuals with developmental disabilities and
providing a supportive living environment tailored to their unique requirements. Matheny Far Hills Supportive Housing and Peapack Road II Supportive Housing provide four bedrooms each to serve as permanent residences for such individuals. Matheny School and Hospital, Inc., which caters to the needs of the developmentally disabled, serves as the projects’ sponsor and social service provider, offering 24-hour supervision and supportive services to all residents. These projects were made possible through NJHMFA’s Special Needs Housing Trust Fund.

2022 4% LOW INCOME HOUSING TAX CREDIT AWARDS

Jacob’s Landing Phase III

Woodbridge | 60 units

Jacob's Landing Phase III is a redevelopment project of Woodbridge Garden Apartments, a public housing complex on Bunns Lane.
The project provides 60 new affordable homes through a mix of
one-, two-, three-, and four-bedroom apartments. Each apartment comes with fully furnished kitchens, energy-efficient appliances, and
off-street parking. Tenants can receive assistance from an on-site
social services suite, and the complex offers nearby access to the lively Woodbridge shopping district. Strategically located near the Garden
State Parkway, New Jersey Turnpike, and NJ Transit bus and rail service, there are many convenient options for transportation. The success of Jacob’s Landing Phase III highlights NJHMFA’s dedication to providing
high-quality and desirable housing for New Jersey residents.

HOSPITAL
PARTNERSHIP
SUBSIDY PROGRAM

University Hospital

The Hospital Partnership Subsidy Program (HPSP) stems from the recognition
that access to quality housing is critical to maintaining good health and that hospitals are crucial anchor institutions well-positioned to advance housing in conjunction with healthcare. Under this award-winning program, NJHMFA matches funding contributions from participating hospitals to provide affordable rental apartments for low- and moderate-income families, as well as apartments with access to supportive and wrap-around services for residents with special needs.
The Georgia King Village is a prime example of what can be accomplished
through the HPSP. This groundbreaking initiative is a collaboration between L+M Development Partners, Type A Projects, MSquared, and University Hospital. Located in Newark's Fairmount neighborhood, the project aims to create 78 affordable rental apartments catering to low- and moderate-income households.

The project stands out for its innovative approach in integrating housing and healthcare services to enhance resident health outcomes. Serving as a gateway to University Hospital, the development includes a ground-floor clinic and hospital office space. This wellness center, operated by University Hospital, will provide vital outpatient medical care to the at-risk population in the neighborhood, thereby improving access to healthcare services and social support.

Financing this transformative $42 million project involves a mix of public and private capital. Wells Fargo contributes $18 million in tax credit equity, while NJHMFA provides $22 million in mortgage financing. The NJHMFA Special Needs Housing Trust Fund contributes $1.6 million, and the Hospital Partnership
Subsidy Program allocates $6 million. Furthermore, the Multifamily Rental
Housing Production Fund provides $3.5 million, University Hospital contributes
$3 million, and the city of Newark and Essex County contribute $300,000
each through HOME funds.

NEW JERSEY HOUSING POLICY AND LEGISLATION

Historic housing investments in the FY2023 Budget

Following Governor Murphy's signing of P.L.2022, c.8 on March 29, 2022, NJHMFA successfully restored over 500 units across seven
Hurricane Ida-impacted properties.

The fiscal year 2023 (FY2023) state budget set historic levels of investment in affordable housing, aided by an infusion of funds from the American Rescue
Plan Act. To help municipalities meet their constitutional obligations to provide affordable housing under the Mount Laurel doctrine, the budget allocated
$335 million to build over 3,300 affordable homes across 43 developments through the new Affordable Housing Production Fund (AHPF) administered by NJHMFA. Thanks to the AHPF, the state’s backlog of unbuilt 100-percent affordable housing projects approved in municipal housing settlements with the Fair Share Housing Center will be addressed.

The AHPF will effectively double New Jersey’s statewide housing production, facilitating the construction of 1,700 new homes for families, over 1,100 new
homes for older residents, and nearly 550 new homes for those needing greater community support, including people with disabilities and survivors of domestic abuse. These investments will create new opportunities in communities which have historically had little affordable housing available, helping create a stronger and fairer New Jersey for the future.

The budget also allocated $100 million for the Affordable Housing Trust Fund and $15 million for the Neighborhood Revitalization Tax Credit, two major sources of funding for the construction of affordable housing. By the end of the Murphy Administration’s second term, according to Executive Director Melanie Walter,
the investments in this budget “will produce approximately 10,000 new safe, affordable, high-quality homes for New Jersey residents.”

Making progress on stalled affordable housing projects by providing Affordable Housing

Gap Subsidy:

Recognizing the hardship to affordable housing developers from increased construction costs, pandemic-related funding gaps, and supply chain disruptions, the NJHMFA board of directors approved $40 million for Affordable Housing
Gap Subsidy (“AHGS”) in February 2022. For any eligible projects affected by pandemic-related funding gaps which had received funding commitments by November 30, 2021, AHGS provides up to $1.5 million (or $2.5 million for projects with at least 150 units) in low-interest loans to finish construction of affordable units. Prioritizing projects funded through LIHTC which are in danger of losing their credit allocation, this subsidy allows NJHMFA to ensure the rapid completion of 1,300 affordable homes in 23 separate developments across the state.

Rehabilitating affordable housing after Hurricane Ida through P.L.2022, c.8

NJHMFA has been hard at work implementing the $25 million appropriated for its Capital Improvement and Assistance Program under P.L.2022, c.8. These additional funds are supporting the rehabilitation of eligible affordable housing properties which have been impacted by natural disasters or other emergency circumstances, with a focus on properties damaged as a result of Hurricane Ida. Since Governor Murphy signed P.L.2022, c.8 on March 29, 2022, NJHMFA has rehabilitated over 500 homes in 7 properties, out of more than 60 NJHMFA properties damaged during Hurricane Ida.

Board Members

The NJHMFA Board has played a crucial role in supporting the Agency's work.
Their dedication and swift action have allowed NJHMFA to respond effectively to emerging needs in the housing community. NJHMFA’s 2022 board members were:

The late Lt. Governor Sheila Y. Oliver

ex officio, Chair, Commissioner of the Department of Community Affairs of the State of New Jersey

Marlene Caride

ex officio, Commissioner of the Department of Banking and Insurance of the State of New Jersey

Elizabeth Maher Muoio

ex officio, State Treasurer of the State of New Jersey

Sarah Adelman

ex officio, Commissioner of the Department of Human Services of the State of New Jersey

Matthew Platkin

ex officio, Attorney General of the State of New Jersey

Dorothy L. Blakeslee

public member, of Wyckoff, New Jersey

Stanley M. Weeks

public member, Vice President and Senior Business Banker, PNC Bank

Their contributions and expertise have been invaluable in advancing themission of NJHMFA and achieving positive outcomes for the housingcommunity in New Jersey.

Conclusion

During 2022, NJHMFA has undertaken impactful new investments in housing production, demonstrated steadfast commitment to struggling affordable development efforts, and increased its support for homeownership attainment and retention. Through initiatives targeted to meet the unique needs of the
time, NJHMFA has improved the lives of many individuals and families across
New Jersey’s many and diverse communities. In the year ahead, NJHMFA will continue to advance its mission in partnership with its many stakeholders,
working together toward a stronger, fairer, and more affordable future for
all residents of the Garden State.

2022 ANNUAL REPORT