Bill Text: NJ S2485 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes Residential Property Repair Program; appropriates $30,000,000.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-02-05 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2485 Detail]
Download: New_Jersey-2024-S2485-Introduced.html
Sponsored by:
Senator SHIRLEY K. TURNER
District 15 (Hunterdon and Mercer)
SYNOPSIS
Establishes Residential Property Repair Program; appropriates $30,000,000.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Residential Property Repair Program, supplementing P.L.1983, c.530 (C.55:14K-1 et seq.), and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Residential Property Repair Act."
2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Agency" means the New Jersey Housing and Mortgage Finance Agency consolidated by section 4 of P.L.1983, c.530 (C.55:14K-4).
"Existing home repair program" means a program administered by a nonprofit organization, governmental entity, public utility, or the contractors and assignees of such entities, that provides services to repair residential housing that are funded in accordance with or through, but not exclusively limited to, the "Weatherization Assistance Program" administered by the Department of Community Affairs.
"Eligible applicant" means a homeowner or prospective homeowner, who:
a. has a household income that does not exceed 120 percent of the area median income, and resides in an eligible municipality; or
b. is a first responder who either resides in an eligible municipality or intends to purchase a home that contains a home defect as a principal residence in an eligible municipality.
"Eligible municipality" means a municipality that met the criteria for designation as an urban aid municipality in the 2022 State fiscal year, and that has established an abandoned property list pursuant to section 36 of P.L.1996, c.62 (C.55:19-55).
"First responder" means a law enforcement officer, paid or volunteer firefighter, paid or volunteer member of a duly incorporated first aid, emergency, ambulance, or rescue squad association, or any other individual who, in the course of his employment, is dispatched to the scene of a motor vehicle accident or other emergency situation for the purpose of providing medical care or other assistance.
"Fund" means the Residential Property Repair Fund, established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Home defect" means a defect of a residential unit that:
a. renders the unit unfit for human habitation;
b. creates a substantial health and safety hazard involving the presence of asbestos, mold, pests, or lead; or
c. has resulted in the placement of the property on an abandoned property list, established by a municipality pursuant to section 36 of P.L.1996, c.62 (C.55:19-55).
"Low-interest loan" means a loan issued at an interest rate to be determined by the agency, that shall not exceed the applicable federal funds rate on the date of submission of an application for the program by an eligible applicant.
"Program" means the Residential Property Repair Program, established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. There is established in the agency, the Residential Property Repair Program.
a. The agency shall make applications available for the program and award funding to eligible applicants for the purpose of correcting home defects impacting a residential property in an eligible municipality, in which an eligible applicant resides, or intends to reside, as the eligible applicant's principal residence.
b. Program funding shall not be awarded to an eligible applicant to correct a home defect 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 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 shall be subject to a civil penalty of $5,000.
c. Funding for the purposes of this section shall be provided as a low-interest loan, not to exceed $50,000 per residential unit for an eligible applicant. Program funds shall not supplant existing resources dedicated to existing home repair programs.
d. Each eligible applicant who receives financial assistance through the program as a prospective homeowner shall, prior to the award of financial assistance, complete not less than eight hours of a homebuyer counseling course, as directed by the agency. The homebuyer counseling course shall include, but not be limited to, coursework concerning:
(1) the maintenance of housing costs, including methods for budgeting mortgage payments, utility charges, property taxes, and any other applicable housing cost;
(2) the basics of home finance, property taxes, home warranties, and home inspection;
(3) the legal components of finalizing a home purchase; and
(4) the process of finding an appropriate house, including how to search real estate listings through a real estate agent or other sources.
4. a. There is established a Residential Property Repair Fund, to be administered by the agency, for the purpose of providing the moneys necessary to administer the program.
b. The fund shall consist of any allocations received by the State from the federal government made available pursuant to section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) for purposes of funding the program.
c. Any interest or earnings that are attributable to moneys in the fund shall be deposited into the fund.
d. The agency shall be reimbursed by the fund for its reasonable administrative costs in carrying out the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
5. The agency shall adopt, pursuant to the "Administrative Procedures Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill), which shall include, but shall not be limited to, guidance for what constitutes a home defect, as that term is defined in section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
6. There is appropriated from the funds provided to the State by the United States government, through the "American Rescue Plan Act of 2021," Pub.L.117-2, to the New Jersey Housing and Mortgage Finance Agency the sum of $30,000,000 for deposit in the Residential Property Repair Fund, established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) to carry out the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
7. This act shall take effect immediately.
STATEMENT
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.
