Bill > A5424

This bill aims to address housing availability and prevent speculation by institutional investors in New Jersey by imposing a $30,000 annual fee for each unproductive residential property owned by an institutional investor. The bill defines an "institutional investor" as a partnership, corporation, limited liability company, or trust that owns residential property, with some exceptions for nonprofit organizations, small investors, and financial institutions acquiring property through foreclosure. "Unproductive real property" is defined as abandoned or vacant residential property that has not been continuously or seasonally occupied for 12 months or more. Institutional investors must submit an annual report to the Department of Community Affairs detailing their property holdings, with penalties of $500 for a first offense and $1,000 for subsequent offenses for failing to report. The legislation is motivated by New Jersey's growing population, declining housing inventory, and concerns that institutional investors can manipulate the housing market by holding properties without productive use. The bill aims to incentivize the use of residential properties, increase housing availability, and generate revenue that can be used to address the state's housing needs. The fee will take effect six months after enactment and applies to institutional investors holding, acquiring, or purchasing ownership interests in subject properties from that point forward.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/A5424