NJHMFA sells $40 million in state tax credits to fund affordable housing initiatives and announces Fall Auction

TRENTON, NJ - The New Jersey Housing and Mortgage Finance Agency (NJHMFA) sold $40 million in tax credits to several corporations to fund affordable and workforce housing development. This program is the first of its scale to be offered by any state and increases NJHMFA's ability to respond to the housing affordability crisis by increasing the available supply of housing for New Jersey families.

"Every New Jerseyan deserves the opportunity to live in a safe, affordable home in the community they love," said Governor Sherrill. "These tax credits help turn private investment into housing that will help families, seniors, and essential workers put down roots across our state. This is exactly the type of innovative financing we need to tackle New Jersey's housing shortage and build stronger communities for generations to come."

Building on the success of the spring 2026 auction, NJHMFA announced that approximately $60 million in state tax credits will be made available for auction from October 16 through November 30. The revenue generated from the winning bids will continue to fund affordable and workforce housing.

"The State Tax Credit Auction will help provide safe and affordable housing to thousands of New Jersey families," said Executive Director Melanie R. Walter. "We are excited to expand our toolkit through an innovative legislative and administration partnership that lets us offer tax relief to New Jersey businesses while funding much needed affordable housing."

"Wonderful to see my law, A3128, is already working as intended to increase New Jersey's supply of affordable and middle-income workforce housing. That means more projects are now able to close their financing gaps and break ground sooner, which will put roofs over the heads of countless people who are searching," said Assembly Speaker Craig J. Coughlin. "With the Fall Auction on the horizon we have a great opportunity to continue this momentum, helping towns meet their obligations in a way that doesn't overburden local taxpayers. I'm proud of the work we're doing to give teachers, nurses, first responders, young people and more the opportunity to settle down in the communities they love and serve and I appreciate the towns stepping up to make that vision a reality."

"The NJHMFA State Tax Credit Auction is helping to accelerate affordable housing development by partnering with the businesses and developers who can make it a reality for our communities," said Senate Majority Leader M. Teresa Ruiz. "New Jersey is the first state to take on this endeavor, showing the nation how public-private partnerships can unlock new opportunities to build affordable housing and ensure every family has a safe, stable place to call home."

NJHMFA will continue to make New Jersey tax credits available to eligible businesses through auctions until 2030.

The minimum bid price per tax credit is 80 cents on the dollar. The average bid price per tax credit in the spring auction was 87 cents on the dollar. Awarded tax credits are applicable to the Corporate Business Tax or Insurance Premium Tax. Unused credits can be carried forward for use in the next seven years.

Half of the revenue from the auction will be dedicated to help municipalities meet their affordable housing goals. The other half will be utilized for the production of workforce housing. All program funds will be paired with federal 4% Low-Income Housing Tax Credits (LIHTC), also administered by NJHMFA.

The STCS Program will create new affordable housing for low-income families earning less than 60% of the area median income and new middle-income, workforce housing for families earning between 80% and 120% of the area median income. By leveraging LIHTC and other funding resources, the STCS Program will produce billions of dollars in new housing opportunities across New Jersey.

To learn more about the STCS Program Auction, including eligibility, prior auction results, and program details, please visit our website at https://www.nj.gov/dca/hmfa/about/auction/ or email [email protected].

About Us: The New Jersey Housing and Mortgage Finance Agency (NJHMFA) advances the quality of life for residents of and communities throughout New Jersey by investing in, financing, and facilitating access to affordable rental housing and homeownership opportunities for low and moderate-income families, older adults, and individuals with specialized housing needs. To learn more about NJHMFA, visit: njhousing.gov