Bill > S1391

This bill establishes the New Jersey First-Time Home Buyer Savings Account Program to help first-time homebuyers save money for purchasing a home. The program, administered by the New Jersey Housing and Mortgage Finance Agency, allows certified first-time home buyers to open special savings accounts with participating financial institutions. Individuals can contribute up to $15,000 per year and a maximum of $75,000 total, with account assets limited to $150,000. To qualify, applicants must be New Jersey residents with an annual gross income of $175,000 or less, have never owned a principal residence, and must complete a home buyer education course. The program offers tax benefits, including a 5% tax credit on contributions up to $15,000 and tax-free earnings on the account when used for eligible home-buying expenses such as down payments and closing costs. If funds are withdrawn for non-qualified purposes, a 10% penalty will be imposed. The program aims to encourage homeownership by providing financial incentives and support for first-time home buyers in New Jersey.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S1391