Bill Text: NJ S2720 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes loan program for first-time homebuyers who move to areas with most abandoned properties; appropriates $5 million.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-02-15 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2720 Detail]
Download: New_Jersey-2024-S2720-Introduced.html
Sponsored by:
Senator JAMES W. HOLZAPFEL
District 10 (Monmouth and Ocean)
SYNOPSIS
Establishes loan program for first-time homebuyers who move to areas with most abandoned properties; appropriates $5 million.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a loan program for first-time homebuyers who move to certain areas, supplementing Title 55 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is established a program in the New Jersey Housing and Mortgage Finance Agency to provide interest-free, deferred second mortgage loans to eligible applicants to cover the cost of qualified repairs to a residential property in an eligible area.
b. (1) The maximum amount for a loan shall be $10,000.
(2) A loan may be deferred up until the time of sale or transfer of title of the residential property.
(3) An application for a loan shall be made on forms prescribed by the New Jersey Housing and Mortgage Finance Agency.
c. In order to qualify for a loan, an eligible applicant has to meet at least four of the following seven criteria:
(1) (a) has completed a bachelor's, associate's, or vocational degree program,
(b) is an active-duty member of the military or a veteran, or
(c) has been consistently employed for at least two years;
(2) is a tradesman skilled in carpentry, electrical work, or other skilled labor;
(3) commits to volunteering ten hours a week on community redevelopment or engagement projects, including but not limited to activities such as revitalizing structures or providing pro bono legal services;
(4) is relocating from another state, or has moved to the State within the past three years, and commits to staying in the State for at least five additional years;
(5) is employed or is actively seeking employment in the municipality the applicant is moving to, or within ten miles in any direction of the municipality's boundaries;
(6) is employed or is actively seeking employment within 20 miles in any direction of the boundaries of the municipality the applicant is moving to in either: the arts; the science, technology, engineering, or math fields; with the government at the municipal, State, or federal level; or with a small business; or
(7) is seeking an interest-free, deferred loan to renovate or rehabilitate a multiple dwelling or two-family dwelling, with plans to rent the additional unit or units at a fair-market rate and maintain the property for at least three years.
d. On or before the first day of the ninth month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Executive Director of the New Jersey Housing and Mortgage Finance Agency shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the provisions of this section. The executive director shall adopt criteria for determining the number of abandoned properties in municipalities, and shall determine which 10 municipalities in the State have the highest numbers of abandoned properties.
e. As used in this section:
"Eligible applicant" means a first-time homebuyer who purchases and occupies a residential property in an eligible area, and who meets at least four of the seven criteria of subsection c. of this section.
"Eligible area" means the municipalities in the State with the 10 highest numbers of abandoned properties, and all areas within five miles of the boundaries of these municipalities.
"Qualified repair" means basic rehabilitation repairs to a residential property, including but not limited to improvements to the plumbing, heating system, electrical system, roof, windows, doors, insulation, or exterior, including painting.
2. There is appropriated from the General Fund to the New Jersey Housing and Mortgage Finance Agency $5 million to effectuate the purposes of this act.
3. This act shall take effect immediately.
STATEMENT
This bill would establish a loan program for first-time homebuyers who move to parts of the State with the highest numbers of abandoned properties. This bill would help encourage the revitalization of these areas.
The loan program that would be created by the bill would provide interest-free, deferred second mortgage loans to eligible applicants to cover the cost of qualified repairs to residential properties in eligible areas. An eligible applicant is a first-time homebuyer who purchases and occupies a residential property in an eligible area, and who meets certain other criteria. An eligible area is any one of the 10 municipalities with the highest numbers of abandoned properties in the State, and all areas within five miles of the boundaries of the municipality. A qualified repair encompasses basic rehabilitation repairs to a residential property, including but not limited to improvements to the plumbing, heating system, electrical system, roof, windows, doors, insulation, or exterior, including painting.
The maximum amount for a loan issued pursuant to a program under this bill would be $10,000. A loan may be deferred up until the time of sale or transfer of title of the residential property.
The bill requires the Executive Director of the New Jersey Housing and Mortgage Finance Agency to adopt rules and regulations on or before the first day of the ninth month next following the effective date of the bill.
Lastly, the bill appropriates $5 million from the General Fund to the New Jersey Housing and Mortgage Finance Agency to effectuate the purposes of the bill.
