Bill > S1022

This bill, known as the "New Jersey Foreclosure to Affordable Housing Transformation Act," aims to address the significant increase in mortgage foreclosures by creating a temporary state entity, the "New Jersey Foreclosure Relief Corporation" (Corporation), to acquire foreclosed residential properties and convert them into affordable housing. The Corporation, established within the New Jersey Housing and Mortgage Finance Agency (Agency), will be governed by a board including state commissioners and appointed members with expertise in housing, finance, and community development. The Act defines key terms like "affordable," "eligible property" (residential properties owned by institutional lenders due to foreclosure), and various income levels to ensure housing is accessible to low and moderate-income households, including those with special needs. The Corporation has the power to negotiate and purchase these eligible properties, with municipalities having a 60-day option to purchase them first. Properties acquired must be restricted for affordable housing use for at least 30 years, with specific deed restrictions. The bill also establishes a "Foreclosure to Affordable Housing Transformation Fund" to finance these efforts and outlines how municipalities will receive credit towards their affordable housing obligations for participating. The Corporation is set to cease operations on December 31, 2017, with its assets transferring to the Agency.