Bill > S4830

Introduced Session

This bill establishes a mortgage assistance program in the New Jersey Housing and Mortgage Finance Agency (agency) to provide mortgage assistance for low- or moderate-income homeowners who are in imminent risk of homelessness, as defined in the bill; have experienced a qualifying economic hardship; have failed to make one or more monthly payments on their mortgage; or are at risk of failing to make one or more monthly payments on their mortgage. Specifically, the mortgage assistance program is to provide to low- or moderate-income homeowners a zero-interest, forgivable loan award in the form of deep, moderate, shallow, or single subsidies to be used for mortgage assistance for the homeowner's principal residence. The bill defines the term "qualifying economic hardship" to mean:§ the involuntary termination of employment or loss of a primary or secondary source of income;§ the death of a family member; § a divorce or separation; § an illness, incapacity, disability, or economic event that causes a substantial reduction in household income; or § any other economic hardship that the agency determines to be necessary to effectuate the purposes of the bill.The bill also defines a "single subsidy" as mortgage assistance necessary to completely cover one month in advance monthly mortgage payments; a "shallow subsidy" as mortgage assistance necessary to completely cover two months in advance monthly mortgage payments; a "moderate subsidy" as mortgage assistance necessary to completely cover all mortgage payments in arrears, including fees and other penalties for delinquent mortgage payments, court costs, attorney's fees, all other related fees and expenses incurred as a result of the delinquency, and two months in advance monthly mortgage payments; and a "deep subsidy" as mortgage assistance necessary to completely cover all mortgage payments in arrears, including fees and other penalties for delinquent mortgage payments, court costs, attorney's fees, all other related fees and expenses incurred as a result of the delinquency, and six months in advance monthly mortgage payments. The bill requires the recipient to reside in the home for which the mortgage assistance was provided for a period of three years subsequent to the use of the subsidy payment, and participate in a homeowner counseling course, as described in the bill, prior to the receipt of assistance. The mortgage assistance loan is to be recoverable as a lien if certain criteria are not satisfied, except as provided in the bill. The bill specifies that annual appropriations acts following the State fiscal year of the bill's enactment are to appropriate not less than $200 million from the General Fund to the agency, during each State fiscal year in which the mortgage assistance program remains in operation, to effectuate the purposes of the bill, and defray the costs associated with administering the mortgage assistance program. The bill permits the agency to retain for administrative costs one percent of the annual appropriation. The bill requires that 25 percent of funding awarded through the mortgage assistance program is to be awarded to low-income homeowners, and no less than 25 percent is be awarded to low- or moderate-income homeowners who are in imminent risk of homelessness. If the agency determines that the funding cannot be awarded, because too few qualifying homeowners have applied for the relevant aid category, the bill authorizes the agency to award more of the funding to otherwise qualifying homeowners. The bill requires the agency to report on the impact of the mortgage assistance program every year, and appropriates to the agency, $200 million from the General Fund to effectuate the provisions of the bill. The bill would take effect on the first day of the third month next following the date of enactment, except that the Executive Director of the agency would be required to take anticipatory action necessary to effectuate the provisions of the bill.

AI Summary

Committee Categories

Vince Polistina (R)*,  Brian Stack (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 11/06/2025)

Official Document