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Bill > S4653
NJ S4653
NJ S4653The "Vacant Property Revitalization and Affordable Housing Act"; establishes fund to revitalize certain real property and revises process for tax lien holder to foreclose the right of redemption; appropriates $50 million.
summary
Introduced
06/23/2025
06/23/2025
In Committee
06/23/2025
06/23/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill: (1) establishes the "Vacant Property Revitalization Fund" (revitalization fund) in the New Jersey Housing and Mortgage Finance Agency (agency) to provide grants and low-interest loans to land bank entities and qualified housing nonprofits to support the acquisition, rehabilitation, and disposition of certain housing; and (2) modifies the timeframe during which a tax lien holder can foreclose the right of redemption. Specifically, the bill establishes the revitalization fund in the agency, which is to be a nonlapsing, revolving fund, to be administered by the agency, for the purpose of providing competitive grants and low-interest loans to:§ land bank entities, defined pursuant to the "New Jersey Land Bank Law," P.L.2019, c.159, (C.40A:12A-74 et seq.), for the acquisition, rehabilitation, and disposition of vacant, abandoned, or foreclosed properties; and§ qualified housing nonprofits partnering with land bank entities for the development of housing that is substantially reserved as affordable housing. The bill specifies that grants or loans are to be used for eligible costs, as set forth in the bill, and that priority is to be given for certain proposals. The bill requires the agency to develop and maintain a public dashboard on the agency's Internet website, which is to be updated annually by the agency, showing certain information required by the bill. The bill requires a land bank entity or qualified housing nonprofit that receives a grant or loan from the agency pursuant to the bill to:§ use not more than 20 percent of the total amount of the grant or loan for administrative costs and expenses, overhead costs, consultants, or other similar expenses;§ adopt, implement, and execute tenant protection and anti-displacement strategies that are promulgated by the Executive Director of the agency (executive director) and the Director of the Office of Homelessness Prevention pursuant to the bill; and§ ensure that residential housing developed with a grant or loan under the bill contains an affordability deed restriction, as specified in the bill. The bill provides that a land bank entity or qualified housing nonprofit that violates the bill is to be liable to a penalty of not less than the grant or loan provided by the agency, which is to be collected in a civil action by the Attorney General. The bill requires that damages or other remedies are to be deposited into the revitalization fund. In addition to a penalty collected by the Attorney General, a land bank entity or a qualified housing nonprofit that violates the bill is to be subject to a complaint at the discretion of any person or entity, including a developer, residential tenant, or another land bank entity or qualified housing nonprofit, directly and adversely affected by a violation of the bill, if the affected person or entity files a complaint with the Superior Court of New Jersey, Law Division within 12 months of the date that the violation occurred. The bill permits the complainant to recover: a civil penalty equal to not less than 50 percent of the grant or loan provided by the agency, reasonable attorney's fees, court costs, expenses for expert witnesses, and other related fees and expenses incurred in proving a violation of the bill. For actions instituted by the Attorney General and by adversely affected persons or entities, the bill permits the court to award additional damages or other remedies as the court deems proper and that are necessary to deter violations of the bill. The bill requires the executive director to submit an annual report to the Governor and Legislature, which is to contain data from the public dashboard, outcomes, challenges, and equity impacts resulting from grants or loans provided pursuant to the bill. The bill requires the executive director and the Director of the Office of Homelessness Prevention to adopt rules and regulations to effectuate the provisions of the bill, which are to include necessary updates to the Uniform Housing Affordability Controls, and rules that set forth requirements for the content, adoption, implementation, and execution of tenant protection and anti-displacement strategies, and which are to specify actions by a land bank entity or a qualified housing nonprofit that constitute a failure to adopt, implement, and execute tenant protection and anti-displacement strategies. The bill also modifies certain timeframes under the "tax sale law," R.S.54:5-1 et seq. (tax sale law), and the In Rem Tax Foreclosure Act (1948), P.L.1948, c.96 (C.54:5-104.29 et seq.) (In Rem Tax Act), to reduce the time period, after which, a municipality, or its assignee or transferee, or other person that acquires a tax sale certificate, may institute an action to foreclose the right of redemption. The bill reduces the time period to from six months to three months for a municipality, or its assignee or transferee, which is the purchaser of a tax lien, and from two years to one year for all other persons. The bill specifies that, for both the tax sale law and the In Rem Tax Act, a complaint to bar the right of redemption is only to be served by publication and by regular and certified mail, unless the notice by certified mail is returned as undeliverable or the service recipient's address is disputed by that recipient. The bill requires that notice of the action is to be published in a newspaper of general circulation in the municipality where the affected lands are located. If there is no newspaper of general circulation in the municipality, the bill requires that the plaintiff publish the notice on the Internet website of a newspaper that is targeted to reach readers residing in the municipality where the affected lands are located. Within seven days of the date of publication of the notice of foreclosure, the bill requires that the plaintiff serve a copy of the notice by regular and certified mail to any person, or business or government entity, entitled to notice of the foreclosure under the tax sale law or the In Rem Tax Act, respectively. The bill requires the notice to state that an answer is to be filed within 35 days of the date of publication, or the date of the mailing of the notice, whichever is later. The bill appropriates $50 million from the General Fund to the revitalization fund to effectuate the provisions of section 3 of the bill, which funds are to be initially allocated as grants or low-interest loans over a three-year period. The bill would take effect on the first day of the third month next following the date of enactment, except that the executive director and the Director of the Office of Homelessness Prevention are required to take anticipatory action necessary to effectuate the provisions of the bill related to the revitalization fund.
AI Summary
This bill establishes the Vacant Property Revitalization Fund to address New Jersey's housing challenges by providing grants and low-interest loans to land bank entities and qualified housing nonprofits for acquiring, rehabilitating, and developing affordable housing in vacant or abandoned properties. The fund will receive $50 million and prioritize proposals that dedicate at least 50% of properties to low- and moderate-income housing, partner with local nonprofits, and target communities with high vacancy rates. Recipients must limit administrative costs to 20% of the grant, implement tenant protection strategies, and ensure that developed residential housing includes a 20-year affordability deed restriction requiring future sales or rentals to households within specific income limits. The bill also modifies tax foreclosure processes by reducing the timeframe for tax lien holders to foreclose on properties (from six months to three months for municipalities and from two years to one year for other entities) and adjusting notice requirements, allowing service primarily by publication and certified mail instead of personal service. Penalties for non-compliance include financial penalties and potential civil actions, with all recovered funds returned to the revitalization fund. The legislation aims to address New Jersey's housing emergency by facilitating the rapid conversion of vacant properties into affordable housing while protecting tenant interests.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 06/23/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4653 |
BillText | https://pub.njleg.gov/Bills/2024/S5000/4653_I1.HTM |
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