Bill > A2168

This bill, known as the "New Jersey Residential Foreclosure Transformation Act," establishes a new corporation to address the issue of vacant and abandoned residential properties resulting from foreclosures. The act creates the "New Jersey Foreclosure Relief Corporation" (Corporation) under the New Jersey Housing and Mortgage Finance Agency (Agency) to facilitate the purchase and dedication of these properties for affordable housing. The Corporation will contract with qualified community development financial institutions (CDFIs), which are non-profit organizations with significant experience in real estate and affordable housing finance, to acquire foreclosed properties from institutional lenders. Municipalities will have a 45-day window to opt to purchase these properties themselves. Properties not purchased by municipalities will be used to create affordable housing, with restrictions lasting for 30 years. The bill also introduces an expedited process for foreclosing on vacant and abandoned residential properties, allowing for quicker judgments and sales by sheriffs or receivers within 45 days of judgment, provided certain conditions indicating vacancy and abandonment are met. The Corporation is intended to operate until December 31, 2017, after which its assets and liabilities will transfer to the Agency. Funding for these initiatives will come from various sources, including bonds issued by the Agency and dedicated funds from municipal affordable housing trust funds.