LIP – What Can I Expect?
For Landlords Participating in the Program
Rental property owners participating in the program will receive a monthly subsidy for at least 24 months.
- DCA conducts a Housing Quality Standards inspection of the rental unit(s).
- Landlord identifies a potential tenant.
- DCA runs a criminal background check and credit report on all adults in the potential tenant’s household.
- DCA reviews and certifies the potential tenant’s household income.
- If the tenant is approved, DCA notifies the landlord of the Landlord Incentive Program rent.
- Landlord enters into a lease with the tenant using the Landlord Incentive Program rent.
Landlord Incentive Program Rent:
The program provides landlords the difference between 30 percent of the tenant’s monthly income and federal fair market rents each month.
The fair market value varies by county. For example, for a two-bedroom apartment participating landlords would receive a total of $1,173 a month in Atlantic; $1,450 in Bergen; $1,019 in Cape May; $1,202 in Essex; $1,322 in Hudson; $1,420 in Middlesex; $1,410 in Monmouth and Ocean; and $1,202 in Union.
The fair market rents chart can be found at http://www.state.nj.us/dca/divisions/dhcr/rfp/pdf/lipguidelines.pdf on the DCA website.
In order to receive the monthly subsidy, the landlords must submit a Financial Status Report (FSR) and a monthly log certifying households via NJDCA SAGE https://dcasage.intelligrants.com/.
For Tenants Residing in Approved Landlord Incentive Program Units
The tenants residing in Landlord Incentive Program units will pay approximately 30 percent of their gross income towards rent.