New Jersey

<Figure 3-2> New York low-income Housing Governance Structure

housing, supportive services and the provision of financial and technical assistance to communities, local government and community based organizations. As a self-supporting financial agency, New Jersey Housing and Mortgage Finance Agency (HMFA)¹⁶⁾ commits to advancing the work of non-profits and community organizations.

2) Major Programs

Housing Assistance Office oversees programs that prevent homelessness and help people move out of temporary shelters and into stable, permanent housing. The office administers housing assistance programs such as the Homelessness Prevention Program (HPP), the Housing Choice Voucher Section 8 Program (Section 8) and the State Rental Assistance Program (SRAP). Family Self Sufficiency program: Assists families who are participants in the Section 8 Housing Choice Voucher Program toward becoming self-sufficient and self-reliant through the implementation of a jointly developed action plan.

The State Rental Assistance Program provides tenant-based and project-based rental assistance grants that seventy-five percent of the participants admitted to the program must be extremely low-income families (30 percent of area median income as defined by region and household size), in accordance with the income guidelines published annually by the United States Department of Housing and Urban Development (HUD).

The remaining applicants shall not exceed 40 percent of low-income limits (by county) as defined in accordance with the HUD guidelines. The rental subsidy under the State Rental Assistance Program will be for up five years; less, if a Housing Choice Voucher becomes available.

Individual Development Account (IDA) Program are matched savings accounts that

16) HMFA does not rely on any direct funding from the State Treasury to meet its core operating or administrative expenses. HMFA does rely on progressive federal and state housing legislation to contribute to the vitality of the state's economy and the quality of life of its residents.

help low-income people pay for higher education, purchase homes or start small businesses. The IDA program meets these objectives by providing financial education, case management, homeownership counseling and other asset-goal specific training to IDA participants. Description of the IDA program is followed in Table 3-7.

The Housing and Community Development Scholars Program (formerly the Housing Scholars program) was created 1989 by the Department of Community Affairs (DCA) to provide additional and more comprehensive assistance to nonprofit corporations actively involved in the development of affordable housing. Partnering with Wachovia in 1998 offers internship opportunities to more students and broadens the scope of services provided by nonprofit organizations to include community and economic development activities. New Jersey Institute of Technology has provided administrative, payroll, and fiscal services for the program over the past 20 years. This innovative program offers a paid, full-time placement for ten weeks during the summer to graduate and undergraduate students attending the New Jersey Institute of Technology (NJIT), Rutgers University (Camden, New Brunswick and Newark Campuses), Monmouth University, New Jersey City University, and Ramapo College, Rowan University, Stockton University, and The College of New Jersey. Funding from NJ DCA and Wachovia Foundation pays 70% of Scholars’ wages. However, the participating nonprofit agency must contribute 30% of the wages. Undergraduates receive $13.00 per hour; graduate students are paid $15.00 per hour for a maximum― of 350 hours. A maximum of 30 students majoring in architecture, civil engineering, urban studies and planning, management, public policy and administration, social work (international and community development program), and geoscience/geographic information systems will be selected to participate in the program. Before beginning their internships, students attend an intensive week-long orientation and training program designed to explore the development process and the emerging role of nonprofits in affordable housing, and community and economic development.

<Table 3-7> Description of the Individual Development Account (IDA) Program

Program Overview

An Individual Development Account (IDA) is a matched savings account that enables income eligible families to buy a first home, pay toward the cost of post -secondary or vocational training, or to start a small business. A “savings match” supplements an IDA participant’s saving deposits by matching one dollar for every dollar saved of earned income over a one to five year period.

Eligible Sponsor Requirements

Non-profit agencies are eligible to administer the program. Selected organizations operate as sub-grantees in delivering IDA services.

Size of Grants

The average grant is approximately $100,000 for a five-year contract period. The grant award represents match savings only. No administrative funds are available at this time.

Eligible Participants

and Maximum

Income Limits

Income eligible NJ residents participating in the program must have at least one minor child, be employed for at least 20 hours per week and have a household gross income that is equal to or less than 250 percent of the Federal Poverty Level at the time of their enrollment..

- All sources of household income are included, except for income received by persons under age 18 and income received by dependents enrolled in a full-time undergraduate program.

- Earned income is any taxable wages, salaries, tips, net earnings from self employment and/or gross income received. Other sources of household income include:

Interest and dividends;

Pensions and annuities;

Social Security and railroad retirement benefits;

Alimony and child support;

Welfare benefits;

Workers Compensation benefits;

Unemployment Compensation (insurance); or

Veteran’s benefits.

No household shall be eligible for assistance in the event of open and or ongoing bankruptcy proceedings.

Match Ratio

The IDA program provides a State match rate of one dollar for every dollar of earned income deposited by a participant into an individual development account. The maximum amount provided as a match per account is $4,500 over a five year period. Deposits in access of $1500 per calendar year are not eligible for a match. An asset must be purchased and funds expended five years from the enrollment date.

Financial Education

It is a program requirement that all participants complete a minimum 10 hours of basic financial education. In addition to basic financial literacy education, each IDA participant is required to complete a minimum of 6 hours of asset goal specific education, prior to their selected asset– purchase. No match funds will be awarded prior to certification that the financial education requirements have been satisfied.

The Neighborhood Revitalization Tax Credit Program (NRTCP) is a designed to foster the revitalization of New Jersey’s distressed neighborhoods. The Program offers business entities a 100 percent tax credit against various New Jersey state taxes.

Credits are provided to business entities that invest in the revitalization of low- and moderate-income neighborhoods in eligible cities. Sixty percent of the tax credit funds must be used for activities related to the development of housing and economic development. The remaining balance may be used for complementary activities such as the provision of assistance to small businesses, removing barriers to self-sufficiency, and promoting the integration of mixed-income neighborhoods. A total of $10 million per year is available in tax credits, which is expected to leverage more than $100 million in total grants, loans and equity investments in those neighborhoods. In order to qualify for this tax credit investment, a not-for-profit entity must choose a neighborhood, prepare a neighborhood revitalization plan and submit the plan to the Department of Community Affairs (DCA) for approval. Once DCA has approved the plan, the entity can then prepare and submit a specific project for DCA approval, which will include implementation strategies and demonstrate how the project will specifically use the tax credit investments. Each approved project can qualify for up to $1 million in tax credit investments.

3) Roles of Nonprofit Organizations

New Jersey has a very unique nonprofit housing network. A coordinating and leading nonprofit organization created a network of nonprofit housing organization in New Jersey. Since 1989, the Housing and Community Development Network of New Jersey has worked to improve the environment for the work of community development corporations, and to strengthen their capacity to create housing and

revitalize distressed neighborhoods throughout New Jersey. The Network is a statewide association of over 250 non-profit housing and community development corporations, individuals, professional organizations, and prominent New Jersey corporations that support the creation of housing choices and economic opportunities for low- and moderate-income community residents. The Network and its members share a commitment to promoting economic justice and the empowerment of low-income individuals and communities, and encouraging wider participation in the framing and implementation of public policies. The Network supports CDC members by providing targeted technical assistance and educational programs, pursuing additional resources and improved public policies, and conducting research on ways to enhance the impact and effectiveness of the community development sector. The Network works with members and others statewide to develop the resources and policies needed to ensure that the housing and community development sector continues to expand and thrive, providing families with opportunity and helping to revitalize communities. As part of its education and advocacy mission, the Network works to uncover and analyze barriers to community development, educate members and the public about critical public policy issues, and develop positive policy alternatives.

To increase the influence of housing and community development advocates, the Network has organized geographically based Advocacy Teams. Since their launch in 2006, these A-Teams have quickly become the backbone of successful lobbying and organizing efforts at the local, state and federal level. Working in over 17 NJ counties, these Network members and allies participate in a range of activities that support neighborhood and citywide grassroots campaigns and advance their statewide and Federal issue agenda. These activities include: organizing and attending meetings with elected and appointed officials at the local, state and federal level; participating in Network advocacy events, i.e. rallies, lobby days; Community Development from the

Ground Up Bus Tours recruiting and engaging others to work on the A-Team agenda;

registering, educating and mobilizing voters around housing and community development issues; and, attending planning meetings and training sessions. A-Team members are building close working relationships with key legislators and policy makers and educating them about the housing and community development issues affecting the local area. A-Teams are encouraging decision makers across the State to provide policy solutions and dedicate resources that help create affordable housing and rebuild neighborhoods. The Network holds regular training sessions for A-Team members to hone their organizing, lobbying and advocacy skills. In addition, the Network provides A-Teams with issue information and materials, gives strategic guidance to local campaigns and builds bridges between its members across the state.

Table 3-8 summarizes characteristics of New Jersey low-income housing services.

<Table 3-8> Characteristics of New Jersey low-income Housing Service Government

leading agency The New Jersey Department of Community Affairs Supporting

agencies New Jersey Housing and Mortgage Finance Agency

Major Programs

Homelessness Prevention Program (HPP)

•

the Housing Choice Voucher Section 8 Program

•

State Rental Assistance Program (SRAP)

•

Family Self Sufficiency program

•

Individual Development Account (IDA) Program

•

•The Housing and Community Development Scholars Program The Neighborhood Revitalization Tax Credit Program

•

Leading Nonprofit Housing

•The Housing and Community Development Network of New Jersey - 200 nonprofit housing organizations

- Advocacy Teams in 17 NJ counties

4) Governance Structure

As we can see above, New Jersey State’s low-income housing delivery system is characterized as very collaborative governance with a leading nonprofit network (the Housing and Community Development Network of New Jersey). The network has over 200 housing nonprofits and advocacy teams in 17 New Jersey counties. Figure 3-3 shows a very collaborative governance structure of low-income housing service in New York.

<Figure 3-3> New York low-income Housing Governance Structure