Authorizes HMFA to use certain tax credits; directs HMFA to conduct tax credit auctions to provide financial assistance for certain housing purposes.*

This bill authorizes New Jersey's Housing and Mortgage Finance Agency (HMFA) to provide supplemental tax credits to housing developers who have received four-percent low-income housing tax credits (LIHTC) but would qualify for nine-percent LIHTC. The supplemental credits cover the "project financing gap" for qualifying housing projects, ensuring developers receive a subsidy equivalent to a nine-percent LIHTC. The agency can award these credits to developers who demonstrate a financing gap, with the credit amount limited to the smaller of either the gap amount or the amount needed to reach a nine-percent subsidy level. Developers may transfer or sell these tax credits under specific conditions, including minimum sale amounts and restrictions on further transfers.