For projects with an award of tax credits from a future year’s allocation, HMFA shall issue a binding agreement no later than December 31 of the year of the reservation. Please submit the following items no later than November 30 of the year of your project’s reservation:

• One half of the allocation fee. The total allocation fee equals 2% or 3% of the allocated credit amount over the credit period. The remainder of the fee is due prior to the issuance of the IRS Form 8609;
• Notification of the project's anticipated placed in service date;
• Form of Binding Agreement
• If available, a copy of the recorded deed conveying title to the final ownership entity. The deed book and page numbers should be clearly indicated so that NJHMFA tax credit staff can accurately complete the Deed of Easement and Restrictive Covenant for Extended Low-Income Occupancy. Upon completion, the deed restriction will be forwarded to you for review, execution and recordation.
• Tax Clearance Certification - Please submit this application directly to the Division of Taxation, do not send it to HMFA. Please only include the actual tax clearance certificate in your Carryover package. A Tax Clearance Certificate is valid for 180 days. If you currently have a certificate that is set to expire before Dec. 31, you must resubmit a new application to the Division of Taxation.
• Pre-construction approval from the Green Homes division. Contact Pamela DeLosSantos at 609-278-7627 for more information.

HMFA must also issue a carryover allocation no later than December 31 of the year of your credit authority. Please provide the following no later than November 30 of the year of your credit authority. If you cannot meet this deadline, you may request an extension and, if approved, pay an extension fee of $1,000 for every week the submission is late. This fee cannot be waived.

• One half of the allocation fee if not previously paid. The total allocation fee equals 2% or 3% of the allocated credit amount over the credit period. The remainder of the fee is due prior to the issuance of the IRS Form 8609;
• Notification of the project's anticipated placed in service date;
• Sponsor Certification
• Carryover Allocation Form (Please mail in original notarized document) and Table B (follow the instructions);
• 15-Year Operating Proforma signed by your first mortgage lender that exclusively reflects the following language verbatim: "We acknowledge that this proforma substantially matches the assumptions used in our underwriting of the mortgage." Should your project not have a first mortgage lender, your syndicator should sign the proforma. A new proforma does not have to be submitted if there have been no changes to your operating proforma since application.
• Current Breakdown of Costs and Basis. If financing sources have changed since application/binding agreement, please submit updated firm commitments.
• If available, a copy of the recorded deed conveying title to the final ownership entity. The deed book and page numbers should be clearly indicated so that NJHMFA tax credit staff can accurately complete the Deed of Easement and Restrictive Covenant for Extended Low-Income Occupancy. Upon completion, the deed restriction will be forwarded to you for review, execution and recordation.
• Tax Clearance Certification - Please submit this application directly to the Division of Taxation, do not send it to HMFA. Please only include the actual tax clearance certificate in your Carryover package. A Tax Clearance Certificate is valid for 180 days. If you currently have a certificate that is set to expire before Dec. 31, you must resubmit a new application to the Division of Taxation.
• Pre-construction approval from the Green Homes division. Contact Pamela DeLosSantos at 609-278-7627 for more information.

Please note that the Independent Auditors' Report (with attachment) showing the 10% test has been met is due six months after the carryover is signed. An audited cost certification can be submitted in lieu of a 10% test.

Revenue Procedure 94-57 clarifies that the gross rent an owner may charge will not fall below the rent limit that was in effect either at the time of initial allocation* (default) or at the owner’s election, the rent limit that is in effect at the placed in service date.

• *For 9% projects, the initial allocation is the date of carryover.
• *For 4% projects, the initial allocation is the date of the 42m determination.

If the owner wishes to select the rent limits in effect at the placed in service date, a notification letter must be submitted to the Natasha Solomon, Manager of Tax Credit Compliance BEFORE any building is placed in service.

If notice is not received, or if it is received after the placed in service date, the gross rent floor will be the rent limits in effect at the time of initial allocation.* This is a one time, irrevocable election.