Bill > S2485

Introduced Session

This bill establishes the "Residential Property Repair Program" in the New Jersey Housing and Mortgage Finance Agency ("HMFA"). The bill directs HMFA to award program funding, in the form of low-interest loans, to correct home defects for homes within eligible municipalities, in which an eligible applicant resides or intends to reside. The bill defines a "home defect" as a defect of a residential unit that: (1) renders the home unfit for human habitation; (2) creates a substantial health and safety hazard involving the presence of asbestos, mold, pests, or lead; or (3) has resulted in the placement of the property on an abandoned property list, established by a municipality pursuant to N.J.S.A.55:19-55. The program would only be available for home purchases in "eligible municipalities" that met the criteria for designation as an urban aid municipality in the 2022 State fiscal year, and that have established an abandoned property list pursuant to N.J.S.A.55:19-55. The program would be further limited to "eligible applicants," meaning homeowners or prospective homeowners, who (1) have a household income that does not exceed 120 percent of the area median income, and reside in an eligible municipality; or (2) are first responders who either reside in an eligible municipality or intend to purchase a home that contains a home defect in an eligible municipality. Program funding would not be awarded to an eligible applicant unless the eligible applicant commits to residing in the home as the eligible applicant's principal residence for no less than five years after the home defect, for which funding is provided, is corrected. If a beneficiary of the program stops residing in the property as a principal residence before the end of this timeframe, that person would be subject to a civil penalty of $5,000. Funding for the program would be provided as a low-interest loan, not to exceed $50,000 per home for an eligible applicant. Program funds would not supplant existing resources dedicated to existing home repair programs. Each eligible applicant who receives financial assistance through the program as a prospective homeowner would be required, prior to the award of financial assistance, to complete not less than eight hours of a homebuyer counseling course, as directed by HMFA. The bill would establish a Residential Property Repair Fund, to be administered by HMFA, for the purpose of providing the moneys necessary to administer the program. The bill would appropriate $30,000,000 to HMFA from the funds provided to the State by the federal government, through the "American Rescue Plan Act of 2021," Pub.L.117-2, to carry out the purposes of the bill. Any interest or earnings that are attributable to moneys in the fund would also be deposited into the fund. The bill directs HMFA to adopt rules and regulations to carry out the requirements of the bill. The bill would take effect immediately.

AI Summary

Committee Categories

Shirley Turner (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/05/2024)

Official Document