Description

NJHMFA Announces State Tax Credit Subsidy (STCS) Program and Sets Date for First Auction

About the Program

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) has authorized the State Tax Credit Subsidy (STCS) Program to expand workforce and affordable housing. Over the next five to six years, NJHMFA will auction up to $500 million in state tax credits to generate funding for new development.

 The first auction will open on October 27, 2025 and will run for 30 days, offering up to $100 million in state tax credits, with a minimum bid requirement of $250,000 at $0.80 per $1 in face value. Credits can be applied to the Corporate Business Tax or Insurance Premiums Tax in the first year or can be applied to tax liabilities over the course of seven years, delivering lasting financial benefits for successful bidders.

For businesses, this is more than a tax advantage. It is the first chance to be part of a competitive process that generates up to 20% in tax savings while supporting critical investment in the Garden State. See our checklist below to learn how your business can get ready to participate in the first auction.

Auction proceeds will be paid with federal 4% Low-Incoming Housing Tax Credits with half directed to workforce housing and the other half to expand affordable housing opportunities.

 Preparation Checklist:

•Obtain a valid Tax Clearance Certificate. A current certificate is required to bid and confirms your business is in good standing with the state. Certificates can be requested by contacting BusinessAssistanceTC.Taxation@treas.nj.gov or calling (609) 322-6835. 

•Bookmark NJHMFA’s Auction Portal and check back on October 27. The auction will run entirely through NJHMFA’s secure online portal. Visit the site in advance, bookmark it for easy access, and review posted guidance so you’re ready to place bids once the window opens. Visit our portal here. 

•Prepare bid documentation in advance. Decide on the tax credit value you intend to bid and organize your materials ahead of time. This will allow you to act quickly and competitively once bidding begins. 

•Sign up for updates. Join NJHMFA’s contact list to receive reminders, announcements, and guidance leading up to the October 27 opening. Sign up for our mailing list here. 

Learn More

 To learn more about the STCS Program Auction, including eligibility and auction details, please visit https://www.nj.gov/dca/hmfa/about/auction/ or reach out to auction@njhmfa.gov For information on the STCS Program Fund, please reach out to njhmfa_multifamily@njhmfa.gov. For email updates on the upcoming auction, sign up for our mailing list here. New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov